How can you improve your Credit Score?

Credit Reports are inherently fraught with errors.  You should take steps to insure your information is correct.  All consumers have the right to obtain a free copy of their credit report annually.  Go to www.annualcreditreport.com or call 877-322-8228 for your free credit report.

There are several strategies you can embrace to improve your Credit Score:

1)      Pay your bills on time.  This has the single biggest impact on your credit score.
  Pay them within 30 days.

2)      Maintain at least 2 credit cards but avoid having more than 5.  Too many credit
  cards will lower your score.

3)      Payoff your credit cards each month.  This not only saves you interest, but 
  demonstrates you have the ability to manage your credit.

4)      Maintain a balance on your credit cards that does not exceed 50% of the credit
  limit.  If you have a line with a $3,000 limit, keep your balance under $1,500. 
  It’s actually better to have two cards, each with a $2,000 limit and a balance
  of $1,000 than to have one card with a $3,000 limit and a balance of $2,000.

5)      Don’t close old accounts.  Old accounts are better than new ones.  Even if you
  have a zero balance, maintaining that account in an active status improves
  your score.

6)      Watch whom you borrower from.  Try to borrower from banks, credit unions or
  mortgage companies rather than finance companies.  Furniture and appliance
  stores normally use finance companies, and WHO you owe to will affect your
  score.

7)      Limit the number of credit cards you have, and don’t apply for credit
  frequently.  Don’t get trapped into applying for credit cards at airports,

       athletic events and the like.  The application process itself impacts your credit
  score – each time your credit report is pulled by a prospective creditor, your
  credit score could drop.

Maintaining your good credit rating is an ongoing process.  By being vigilant in managing your credit, the financial benefits will follow.