Tips to Improve Your Credit Score

As you all may know, Your credit score plays an important role when applying for a loan, whether it be a house, car, or even furniture. The higher one's credit is, the lower interest rate they will receive. Here I will give you a few pointers to raise your credit.


1) Point per payment - For every bill payment you send in on time, the credit agencies will add one point to your score.


2) $1 extra = 1 point extra- Agencies will grant you an extra point if you send in more than the minimum payment, even if it's just a dollar!


3) Credit used VS. Balance- If you are using more than half of your available credit, chances are you are getting points deducted from your score every month. If you have a well established credit card and owe $5,000 on an $8,000 credit limit you can

a)Pay down balance to $4,000 or less

b) Ask creditor for credit raise to $10,000The whole point is to watch your ratios.


4) Enroll in the DO NOT MAIL list (free)- IF you enroll to this service you will not receive any credit card offers in the mail. Credit Agencies will grant you anywhere from 10-20 points to your FICO score. Go to http://www.optoutprescreen.com/ and click on "opt in" do 5yrs to receive max points. (You can always "opt out" or if you apply for new credit you might automatically get "opted out)


Maximise your points every month by dividing your payments in half and sending atleast an extra dollar to your minimum payment. So if you have five credit cards and you apply these rules you can receive 15 extra points per month.



REMEMBER......... Don't ever close an account! By closing an account you will erase all the good transaction history. Pay it off, don't close it.