| Simple Steps To Improve Your Credit Score |
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| Written by Ali Lawrence |
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The FICO 4-1-1: The computation of your credit score:
Here are a few steps for improving your score: Manage ‘revolving credit’
Balance ‘revolving’ and ‘installment’ debt Installment debt such as auto loans and mortgages are ‘good debt’ (while credit card is ‘bad’, I presume) hence, it is beneficial to have a mix of installment and revolving debt Open accounts sparingly Contrary to popular belief, having many credit accounts (because you can) is not beneficial. Also, having an account increases temptation to use it! Develop credit history over time The quick fix of opening several accounts in a short burst, however, is not helpful Decrease new credit requests Decline the application for the new department store card! Having too many lenders requesting your credit information is detrimental. If you are shopping for loans or an apartment, then try to have all requests to the credit reporting agencies within a focused time frame. No-Brainer: Pay bills on time It’s helpful to set-up bill pay online or automatic payment with utility companies Build credit without credit A pre-paid card is a viable option for re-building credit. It reports on-time payments to the credit bureaus.
_______________ "5 Tips for Improving Your Credit Score." Board of Governors of the Federal Reserve System. Ed. Federal Reserve Board. Web. 21 Oct. 2009. “ MyFICO - Improving FICO Credit Scores. Credit Education Center. Web. 21 Oct. 2009. . "7 fast fixes for your credit scores - MSN Money." 7 fast fixes for your credit scores. Liz Pulliam Weston. Web. 21 Oct. 2009."Boost Your Credit Score." Boost Your Credit Score. Rande Spiegelman, 22 Apr. 2009. Web. 21 Oct. 2009. . |
Lenders and employers use credit scores to measure applicants and potential hires. Unfortunately, many of us are measured and found lacking (30 million to be exact). A low credit score is a smear on an individual’s record that can greatly impact quality of life. The good news is that a low credit score can be enhanced. The bad news is that improvement is not an effortless process.
Keep credit card balances low or eliminate balance altogether. Although there is an interest-payment saving associated with transferring balances, it is better for your credit score to have fewer accounts even with the same high balance 
Achieving a credit score that will allow you to attain the assets that you desire is a difficult yet attainable feat. It is important to understand what activities account for an undesirable score and also to proactively work to improve your score. Ultimately, by being responsible, patient, and consistent, you can turn a new page in your financial life. Your heart desires await.