How to Increase Credit Scores
Your credit score can impact many areas of your life. Having a good FICO score will help you get better rates on loans and can affect your chances at renting a great apartment or even getting new job opportunities. If you have had problems with your credit score in the past, there are many ways to begin improving your FICO score. Follow these tips to find out how to increase your credit score and regain your financial freedom. All you need is a connection to the Internet and some time.
Other People Are Reading
Instructions
-
-
1
Order copies of your credit report from each of the three major credit bureaus, Experian, Equifax, and TransUnion. You can get reports directly from these companies, or from one of the many websites that provides the service, like MyFICO.
-
2
In many states, there are ways to access one or more of your credit reports for free. Freecreditreport.com is one of the best known companies for this.
-
-
3
Check that all the information is correct. A large percentage of people have errors on their credit reports. Major mistakes can have an obvious problem, but even small mistakes can change your FICO score. Make sure all of your credit limits are correctly listed.
-
4
Make sure to pay all of your bills on time, even if you can only pay the minimum payment. Late payments will cause major damage to your score. A single late payment of over 30 days will cause a drop in your credit score. Payments that are 60 or more days late can hurt your ability to recieve new credit or loans.
-
5
Do not close any credit accounts. One major factor in determining your credit score is the percentage of your available credit that is currently being used. If you have an outstanding balance and close one of your credit cards, your credit to debt ratio will increase. If your total credit card balance is more than 50% of the available credit in your accounts, it will begin to lower your FICO score.
-
6
Wait to open new lines of credit. If inquiries are listed on your credit report, you may find your score decreasing. Try to limit new credit inquiries to no more than one per year.
-
7
Contact your credit companies. If you are typically a good customer, you may have some leeway in negotiating with your creditors. For instance, some credit card companies will erase one late payment from your record if you write to request it. Eliminating even one late payment can raise your score.
-
1
Tips & Warnings
If you feel that you are in over your head, you may want to consult a legitimate credit counseling service. Focus on paying down your credit card debt as quickly as possible.
