5 Steps to Better Credit

[resaikking]

I found these tips and I thought they were helpful.

1. Correct blatant mistakes Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late -- can take 30 days but it make take up to three months, sometimes longer depend how fast creditor work and how much work they have sometimes they are simple overload with a credit card problem!

2. Pay your bills on time This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan. That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.IF you have a problem with paying credit card on time call creditor immediately!

3. Reduce your credit card balances A heavily weighted factor in your FICO but remeber FICO not FAKO! generic fico score.. score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

4. Pay off debt rather than moving it around this is very smart idea a real smart! Since the ratio of your credit card balance to your credit limit is key, closing out an account and transferring the balance simply means you increase that ratio, which is likely to lower your score. In other words, say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50 percent of that limit.

5. Don't close unused credit card accounts near loan time If you have several credit card accounts but are only using a few of them, you'll only raise your balance-to-limit ratio if you close the unused ones. You also shouldn't open new accounts when applying for a loan if possible. If you have a short credit history or very few accounts, opening a new credit line may lower your score since you don't have a proven track record. What's more, a new account will lower the average age of your accounts, another factor in your FICO score and again not fako

[lalit7552]

These can be very important information but I always believe that using your credit card with respecting your purchasing power and paying them back on time is an important and basic rule for credit card users.

If you will follow this thumb rule than believe me guys credit card using can be enjoyable to you forever.

[lalit7552]

I always believe in and always give pressure on your second no point.

[bhushna22]

Good post.
Yeah all the points explained here are rite and all are very necessarily important for better service from the bank and also for our own good.

[Daglu]

Second point is the best one as we need to play safe and not play with the bank pay all the debts before the due date and get nice credit line and enjoy transaction with the card.

[money3]

Pay on time this is the best way to improve your credit rating, everyone say the same if you pay your monthly payment on time and you are current with your credit card bill you should have your credit score of 800 easy.. just stay with your credit card payment on time please!

[admin]

Paying credit card on time improve your score very drastically but fail to pay on credit card on time will lower your fico score and not only fico but also fako from all 3 credit report agency very drastically.

[support]

Mistakes on your credit report make huge drop.. I though always to remove any late payment but this is not the reason my credit score was lost, creditor forget or simple creditor don't need to report to any credit report agency your credit report activity so that the reason my score was lot because I didn't have any activity on Transunion and Experian?

[matt]

I will say to use Lexington law to remove your inquires and clean your credit score if you really care about credit score and well being you should contact Lexington law immediately!

[erick99]

Those are excellent suggestions! I have a son getting ready to turn 18 and will likely get a credit card to get started so that he can begin a credit history. I printed this post out for him to read. Thanks!