Tips To Improve Your Credit Score
If you've reviewed your credit report and are not happy with what you see, here are some simple ways to start to improve your score.
First of all, accuracy is the first thing to address and the best way to raise your score. Review your credit reports and fix any errors that could be reducing your score. This score is based on the information contained in your credit reports. If you've never seen your credit report or if you haven't seen it in several years, get all three and review them carefully because each contains different information. If you check themregurlarly, use the free reports so you can review them, one every 4 months. It seems you need to review them more than once a year, with ID theft running rampant nationwide.
Next, pay your bills ontime. Paying ontime helps build a healthy payment history. It also rebuilds damaged credit. With credit late pays on your report, paying in a timely manner for a 12 month history will go a long way to produce positive results on your report. Late payments may show for up to 7 years but with your payments showing timely payments for 12-24 months, creditors will notice your responsibility for making your payments on time.
Step back. If you think you're doing everything right, take a look at the amount of your outstanding debt including your debt to credit ratio. Reducing credit card balances will help you score points with the credit reporting companies. Balances that are at the limits never looks good. Transferring an account balance is not good practice. If you transfer a balance to another card, the reporting agencies see that as increasing your debt load because now you have additional available credit.
Commit. 15% of your score is based on the length of time you've held a relationship with that company. Don't close any accounts if you plan to shop for a mortgage or other loan requiring a good credit score. Opening new accounts and closing existing accounts will negatively affect your score in the short run so avoid these mistakes prior to shopping for a mortgage. Closing accounts needs to be timed carefully. Stagger the closing of accounts out over time. Try to maintain a couple of credit card accounts, keeping balances low because life's circumstances can change. You should also maintain a savings account to fall back on.
Plan and look before you leap. When you apply for a loan or acredit card, lenders check your credit reports. These inquiries can put a temporary ding on your credit score. Shop and compare rates before applying for a loan first and deciding if you wish to work with the company later. If you do all your shopping for a mortgage within the same month, it will show as an individual inquiry.
For more information, call or email Sherry Armstrong at 386-679-3191, RE/MAX Property Centre. sherry@sherryarmstrong.com