Credit Score Improvement Tips
Trying to improve your credit score is no easy task. Individuals usually start by looking for a easy and quick way to do so, but find there really isn’t. There are many credit score improvement tips out there, but here is a short condensed list
Credit Score Improvement Tip One: Focus on Your Payment History
There is nothing more important in the FICO score calculation than your payment history and it carries a weight of 35%. Here is a list of credit score improvement tips just for your payment history
- Pay your bills on time – Since late payments make up the negative entries in this section avoiding them will be helpful.
- If you are not current get current with your bills.
- If you are struggling to pay your bills talk with your creditor and try to arrange an agreement
Credit Score Improvement Tip Two: Pay down your debt
Your debt to credit ratio makes up the next largest portion of your credit score and a high one will not be in your favor. Here some idea specific to this area:
- Develop a budget and live by it. If you don’t know where your money is going or have trouble controlling your spending this could be the first place to start.
- Find some extra money to pay off debt. You could have a garage sale or get a second job.
- Don’t open accounts to get a good debt to credit ratio. If often doesn’t work and if you are already struggling to control what you have it is best to limit what you can have available
Credit Score Improvement Tip Three: Don’t Apply for new credit unless you need it
How often you apply for new credit is known as a credit inquiry and these can either hurt your score or do nothing at all.
- The best rule is to not apply for credit if you don’t need it.
- Avoid applying for many new credit cards in a short period of time
- Find a mortgage or auto loan within 30 days of your first application. These will only count as one single credit inquiry
Conclusion
Since many of the factors of your FICO score are interdependent doing just one will have little or no effect. You must try as many things as you can to really improve your credit score. Also, you must realize it is going to take time.
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Tags: Credit Score, improve credit score
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