Can I Improve My Credit Score?
Suffering from a low credit score can be frustrating because it prevents you from getting financing or attractive interest rates. The good news is that even if you have a low credit score, you can take the necessary steps to improve it over time. There are several things you can do to improve your score if you are willing to make the necessary changes.
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Analyze Credit Report
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Look at your credit report. If your credit score is low, something is dragging it down. When you get your credit score from Fair Isaac Corporation or FICO, it will include information about what is hurting your score the most. Check whether everything on your report is accurate. Creditors sometimes make mistakes, which can hurt your score.
Pay Bills
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Pay your bills on time. As much as 35 percent of your credit score depends on how quickly and regularly you pay your bills. If you always pay your bills late, you can devastate your score faster than by doing anything else. Get current on all of your bills and it will start to make a difference within a few months, in most cases.
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Watch Credit Utilization Ratio
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Your credit utilization ratio is the amount of debt you have in relation to your available credit. By paying off your debt or at least paying it down, you can improve your credit score significantly. Try to get your debt down to below 30 percent of your total available credit, if at all possible. While it may take some time to pay down your debt, this can make a big difference in your score.
Leave Accounts Open
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Don't close credit accounts when you pay them off. You can cut up the credit card if you wish but leave the account open. If you close your account, it lowers the amount of available credit you have and this can significantly affect your credit score.
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