Raise Your Credit Score
“Raise your credit score!”
“Repair your credit!”
“Fix your credit! 100% guaranteed!”
You may have seen one of these ads. Such bold promises and with prices to match. However, the Federal Trade Commission (FTC) has released a Consumer Alert against fraudulent credit repair scams, asking consumers to be wary of claims like these.
Instead of relying on quick credit repair schemes to fix your credit score, why not do the repairing yourself? There are many ways you can raise your credit score without spending a single cent. All you need is some amount of credit score understanding and what steps are needed to maintain or build a good credit.
Improve your Payment History
Your payment history is the first factors included in calculating your credit score, so it makes sense that you raise your credit score by improving your payment history. So how do you do it?
Well, the answer should be obvious. Pay your bills on time. If you have missed any payments, get current and stay that way. As much as possible, don’t wait until your bills are at collection. Collection accounts have a tendency to stick in your credit report. Then, you can kiss your hopes to raise your credit score goodbye.
Out of all these tips, the one important thing you need to remember is punctuality in making payments. That’s all. Once you’re passed that hurdle, then you’ll have no trouble trying to raise your credit score.
Lower Amounts Owed
As a rule, credit card debts should be kept at a minimal level. Even if you pay your credit card bills on time, the way credit card companies report your balances to the credit bureau could negatively affect your credit score. The credit card company does it once at any time of the month so if you haven’t yet made your payments at the time, it’s going to look to the credit bureau that you have a lot of outstanding credits.
You can’t raise your credit score if you keep charging numerous purchases in your credit card. Also, paying off your debt is a better option than moving it around. The most effective way to raise your credit score in this area is by paying down your revolving credit. Sometimes, owning the same amount but with fewer open accounts can help lower your score.
Improve Your Credit History
A trick used by some people in order to make it appear that they have a long credit history is to open multiple new accounts. But this scheme is too risky. If you open a lot of new accounts in a very short time, this could actually lower your score down and make you appear like a risky borrower.