How to Improve Credit Score

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By chasingthebull
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Improve Credit Score

As our economy falls further and further towards a recession, obtaining debt will become more expensive. In order to survive, small businesses and sole proprietors will still need to get loans from banks to continue day-to-day operations. Improving your credit score, you allow you to obtain a loan at a lower interest rate.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

This Plan

Step 1

Pay Your Bills On Time - 35% of your credit score is based upon your payment history. I pay all of my bills online via my bank's website. It took around 10 minutes to set up and saves me around $10 a month in stamps.
Step 2

Keep Your Balances Low - 30% of your credit score is derived an examination of your balance. Keep your balance less than 50% of the available credit limit for that card.
Step 3

Keep old cards open - 15% of your credit score is based on the length of credit history you have with the various providers. Having no activity on a card can actually lower your score. Remember, FICO scores are basically an I love debt score. The more you use debt and pay it off, the better risk you become to the lenders.
Step 4

Do not open unnecessary cards - When I was in college, I would open a new card every time they would give me a free t-shirt. Each time you request a new card that activity is recorded. Multiple requests definitely can lower you credit score.
Step 5

The best thing that you can do for you and your family is to get out of debt and stay that way. Start an emergency fund, pay off your current debt, save for your future and enjoy life. You will not miss the burden - I promise!

How to Improve Credit Score

Things You'll Need:

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