If you want to increase your credit score, there are a few specific things you can do. Whether you have a bad or low score you want to bring up, or an average score you just want to see get higher, all of these things will impact your total score.
If you are having a hard time with your credit card, I will suggest you stop using them immediately. If you are not understanding how credit cards work head over here and read this article to help you understand how they work.
The first step is to understand how your credit score is calculated. There are certain things that are reported to the credit agencies and that get factored into your overall score. In addition to this, some things are worth more than others, meaning certain types of things have a greater bearing on your overall score than others. To increase your score, you need to understand what these are.
How to Increase Your Credit Score
Here are some tips for when you owe money:
- Keep balances low on all credit cards and other revolving credit lines. Below 30% is recommended.
- Pay off your debt instead of just moving it around.
- Don’t open many new credit cards just to increase your available credit.
- Don’t try to remove old debt from your credit report. If you paid the debt in full, it can stay because it actually shows your creditworthiness.
- Search your credit report for any errors and inaccuracies and get those removed.
- Always pay your bills on time.
- Raise your credit limit (but don’t use it – still keep it below 30% usage).
The idea is that you want to have available credit but not use too much of it. This shows that you are responsible with the credit. Making payments on time shows that you will return money or credit loaned to you. All of these things improve your score because they prove your credit worthiness.
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