Things You'll Need:
- Patience
- Understanding
- Discipline
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Step 1
The first step in improving your credit is learning self discipline. You should not borrow too excessively but if you do, pay your bills or your note on time.
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Step 2
Limit the amount of times you have your credit report checked. When you have your credit report pulled, it can bring your score down. Having too many inquiries can damages your score. You score is also affected more or less by the type of institution that is reviewing your credit.
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Step 3
Collection accounts such as medical bills, phone bills, returned checks and utility bills typically show up on your credit report. You should get these cleared up as soon as possible.
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Step 4
Another important tip to remember is that you should not owe more than sixty percent of your total available credit limits on all of your revolving accounts. By revolving I mean credit cards and other types of accounts with companies that allow you to keep an open line of credit. As an example, if you have three credit cards and the three credit limits added together total to be $1000, you should not go over $600. Keeping you balances above sixty percent can damage your score.
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Step 5
With revolving accounts such as credit cards, the right amount of cards to have is 2-3. You should also choose to have larger company credit cards and not department store cards. Having too little or too many cards makes the program that generates your score compute you to be more risky than having 203 cards.
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Step 6
As a summary:
1. Get 2-3 "big name" credit cards and not department store cards.
2. Do not go over 60% of the total available limits on revolving accounts.
3 Limit your borrowing to 2-3 times a year
4 Pay your bills on time and in full amount
Keeping these tips in mind will raise your score and save you money in the future. Thank you for your time.
