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Tips for Raising Your Credit Score

You just reviewed your credit report and you’re not happy with what you see.

You’re disgusted. You’re appalled. You’re frustrated.

What do you do? You work a pretty decent job, pay your bills on-time (for the most part) and you try not to spend your money on frivolous things. However, that doesn’t seem to be enough.

“What should you do?”

Below are a few tips that can influence your credit score in a positive way:

1. Review your credit report for inaccuracies.

If you find errors on your credit report, dispute them. You dispute them by contacting each credit bureau that list the errors, in writing. Removing negative errors, will impact your score positively.

2. Maintain a positive credit history.

Continue to pay your bills on-time every month. Processes such as, Bill automation, can assure that don’t miss anything. Remember, lenders use credit history as an indicator of how a consumer may respond to managing additional credit.

3. Decrease your debt.

Pay down your debt as aggressively as possible. “Amount-owed” is another area that impacts your credit score significantly. Start by paying your minimum balance, bot work towards paying a little more than the minimum. This will accelerate the repayment process, which will impact your credit favorably.

4. Use your credit cards responsibly.

Maintain good credit utilization, by not spending over 30% of your credit card limit. Don’t open too many credit card accounts, as multiple inquiries will cause your credit score to decrease. Request a limit increase on your current credit card accounts. Leave credit accounts open. Closing credit card accounts impact your credit score negatively.

5. Have a varied credit mix.

Varied credit shows lenders you can manage credit responsibly. An example of varied credit could be a mortgage, auto loan and a credit card. Each represent mortgage, installment and revolving accounts.

PATIENCE is key. Remember, you didn’t arrive to your credit score over-night, so don’t expect it to improve over-night. Practicing good financial behaviors and making sound decisions will ensure you reach your credit score goal. To understand the make-up of your credit score, please read “What impacts my credit score????”

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