How to Achieve a 720 Credit Score
Your credit score is determined by a collection of credit data supplied by almost everyone you do business with. CBS reporter Tatiana Morales write: "The best number to have is 720 or above. If your score is 720, there's really no need to try and raise it because lenders lump you in the same category as folks with a score of say 800 or 820." Low scores may be the result of factors beyond your control, or reflect poor financial management. No matter the cause, follow some steps to improve your score.
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Instructions
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Get a copy of your credit report to review. In addition to showing your current FICA score, your credit report will provide detailed information regarding all your credit accounts and payment history. Mistakes and erroneous information is commonplace, so you need to review the report carefully for accuracy. You may need to pay a fee for the report. The main credit reporting agencies, Equifax, Experian and TransUnion, will provide reports for about $40. The government run website AnnualCreditReport.com allows you to pull your report from those agencies once a year at no cost.
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Use credit. If your report is particularly short, it is because you aren't using credit thus there is nothing to report. Failure to use credit will result in a low credit score.
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Dispute false or inaccurate information found in your report. Visit reporting agency websites for instructions unique to each agency for how to remove or correct these credit entries.
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Visit credit agency websites for a report analysis. Assuming you paid the agency a fee for the report, these agency websites offer a number of analysis features. Most helpful are tools that allow you to look directly at the impact of paying off certain debts. Determine which accounts to pay off to achieve the maximum boost to your credit score.
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Set up automated bill payments. Perhaps you are a habitual procrastinator. Late payments negatively influence your credit score. Setting up automatic payments through an online bill payment service will assure accounts get paid on time. Obviously this strategy will require some time before the increased credit score is realized.
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Tips & Warnings
Above all, don't let disputed or delinquent accounts go to collections. Other than bankruptcy, this is the scoring equivalent of a black eye on your credit report. Again, if this has already happened, the only remedy is timely payment of future accounts and the passage of time as this damage recedes from your credit history.
