|
|
|
|
Home / Finance / Credit
Improve Credit Score - 3 Tips For Raising A Low Credit Score
By:Carrie Reeder
Raising your credit score does not involve a lot a work. However, there must be a willingness on your part to use credit responsibly. A low credit score makes its more challenging to obtain a credit card or get prime rates on a home or auto loan. On the other hand, a high credit score presents many finance options.
Check Credit Reports for Accuracy
Credit report errors are very common. It’s recommended that all consumers examine their reports twice yearly. This way, if any errors or mistakes are reported, you can quickly identify them and fix the problem.
For example, some creditors may accidentally report an account being past due or unpaid. Usually, common mistakes are easy to correct. However, if you do not start a habit of checking your report, the problems will go undetected, and can potentially lower your credit score.
It helps to obtain a copy of your report from all three bureaus. This provides an accurate credit standing. Also, it’s suggested that consumers review their credit before applying for a home loan or auto financing.
Pay Bills on Time
Never underestimate the value of making timely payments to creditors. Being habitually late on a credit card payment will greatly reduce your credit score. Moreover, this bad habit can result in raised interest rates. If possible, mail payments to creditors several days before the due date. This ensures payment reaching the creditor on time. If you have a difficult time submitting timely payments, consider setting up automatic payments.
Decrease Credit Card Balances
Credit card balances account for approximately 30% of your total FICO score. Thus, reducing balances is a quick way to significantly increase your credit score. To begin, keep credit card use to a minimum. Avoid shopping sprees and spending money frivolously. Attempt to keep balances below 25% of the credit limit.
Once you have successfully reduced or eliminated credit card balances, avoid accumulating additional debt. It may help to payoff balances each month, or establish a spending limit. It’s tempting to close paid off accounts. Although these appear to be a smart credit maneuver, closing accounts will shorten credit history, which lowers credit score.
Article Source: http://www.dailynewarticles.com
Visit www.abcloanguide.com/freecreditreport.shtml to check your credit report online. Also, view our recommended credit card debt reduction companies online.
More Articles from Credit Category:
Bank Safely And Securely
Basic Tips For Getting Out Of Debt
How To Make A Well-Balanced Investment Portfolio
Credit Card Late Fees - How to Avoid Them
Life Insurance - How Much Do I Need?
Why Use Low Interest Rate Credit Cards?
How To Use Your Credit Card To Really Save You Some Money
Accounting Made Easy with Small Business Credit Cards
A Second Chance: Credit Unions
The Citi Hilton HHonors Visa Signature Credit Card - Pros and Cons
Busting the Myths of Your Credit Score
Stopping The Scary Phone Calls
Guidelines to Choose the Right Airlines Credit Card
Balance Transfers Primer
The Elvis Prepaid MasterCard Card - A Card From The King!
|
|
