How to raise your credit score
Before we start, raising your credit score, you should know will take time. There are no true credit score quick fixes. You will not go to bed with a credit score below 600 and wake up with a credit score above 700.
To really start working on your credit score, you should first try to understand how your credit score works. The most popular credit score out there is the FICO score and you really should understand the FICO score calculation. If you know this then you will begin to see how you stack up and should be able to come up with your own solutions, depending on your situation, to raise your credit score.
The first thing you should know about raising your credit score is that you must pay your accounts on time. You should never be late. This is the largest part of your score and even one late payment will hurt your ability to get an excellent credit score.
Paying on time is first but second is the level of debt you carry. This is commonly called your debt to credit ratio and having a good debt to credit ratio is key to having a good score. If you commit to paying off your debt you will see an improvement over time. It will be gradual and will take time. This also requires true commitment.
The next part to consider when trying to figure out how to raise your credit score is to look at your credit history. What you need to know that the average age of all your accounts is called into question as well as the age of your oldest account. There isn’t much you can do to manage this piece but maybe not apply for credit and get new accounts if you don’t need credit.
Another thing to consider if you are trying to figure out how to raise your credit score is your applications for credit, meaning are you applying for new lines of credit? You should stick to the rule if you don’t need the credit don’t apply for it. I know all those you get in the mail are great or a 10% discount off the current purchase at the local retailer is tempting, but skip it. The applying for excessive lines of credit can hurt your chance to improve your score.
There are lots of other ways to start improving your score and these are only a few. But the ones above are a good starting point.
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Tags: improve credit score, raise your credit score
Posted in Credit Score
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