There are lots of tips and tricks to improving your credit score over time. But these nine simple steps will get you started and greatly help improve your credit. Just remember, it can take a few months for these actions to take effect, so if you're planning on applying for a big loan soon, we recommend you get started at least four months in advance for the best results. By paying attention to your credit score and implementing these simple steps, you'll be on your way to a higher financial GPA and a score that could save you thousands annually...
- Get your own credit report and find out your score - Call Mike Spiegel at 317 437-5182 and I will gladly create a FREE report that will include your credit score from all three agencies and your FICO score.
- Identify mistakes and repair errors - Twenty-five percent of credit reports have errors serious enough to cause consumers to be turned down for a loan or job, according to a survey by the U.S. Public Interest Group.
- Negotiate with debt collectors first - Dispute errors or problems directly with lenders first, but make sure to negotiate everything in writing. And be sure to get a letter from the lender or debt collector saying that they will delete problems on your credit report before you pay any bill in collection. Use this leverage to your advantage.
- Control your spending and reduce your debt - Generally, the lower your account balances on credit cards and loans, the better your credit rating. Try to get all of your credit card balances below a 30% debt ratio to improve your overall score.
- Ask lenders to report your credit limit - Ask your banks and credit-card companies to list your credit limit if it's missing on any accounts on your credit report. If you don't, Fair Isaac may assume that those accounts are maxed out even if you haven't borrowed to the limit. This simple step could improve your score by as many as 50 points!
- Limit credit card applications - Every time you apply for a new credit card, your report will be marked with a lenders' inquiry note that could have a negative impact on your score.
- Don't cancel your old accounts - If you close your old accounts, you're shutting down your credit history, which could hurt your score.
- Sign up for automatic bill payment - The best way to never miss a due date again is to set up automatic bill payment. Repeatedly paying your bills late is one of the main ways you can hurt your credit score.
- Monitor your report - Remember, your credit score can be improved over time. (monitor your credit reports at least once per year)
There are lots of tips and tricks to improving your credit score over time. But these nine simple steps will get you started and greatly help improve your credit. Just remember, it can take a few months for these actions to take effect, so if you're planning on applying for a big loan soon, we recommend you get started at least four months in advance for the best results. By paying attention to your credit score and implementing these simple steps, you'll be on your way to a higher financial GPA and a score that could save you thousands annually...
