By Tim H Lambert
Credit score is based on your credit records or files over time. This means that improving one’s credit score takes quite a little while especially that every situation is different and there is just a lot of factors to be considered. The good news, though, is that you do not need to wait for ten years or so to have a good credit score provided that your credit reports do not have negative information such as bankruptcies and foreclosures. In fact, using the tips to be discussed here can increase your score in a month or so.
First, you need to be aware by reviewing your credit files from the three major agencies: Equifax, TransUnion, and Experian. If there are discrepancies and errors, it should be settled as soon as possible. Common errors include incorrect credit limits, reported late payments, and collections which are not yours. This is not hard to do because you can get your credit information from each agency for free. After all, it is your own score that lies here. The second tip, and maybe the simplest one, is paying your bills on time. Delinquent payment is a serious black mark on your credit report. You can always set or arrange automatic payments from your checking account to avoid this problem. The third tip also includes paying, with your credit card balances this time. Minimizing your card balances can surely boost up your credit score. In fact, a lot of individuals with 700-plus scores pay their balances religiously.
Credit card accounts and other ‘revolving credit’ accounts are big factors to increase your score. So, even if these accounts are unused, do not close them. This is the next tip. A long credit history is for your advantage. Using your old accounts occasionally is a very good strategy because your old issuer will also report your credit with them to the three bureaus. Talking about credit cards, another useful tip is to not max out your limit. And if possible, keep your balance not more than 30% of your credit limit. If you are also eyeing for a loan, do it quickly as fast as two weeks. Your credit score can decrease if you have multiple credit inquiries to potential lenders.
You can also get a secured card especially if you do not have any credit histories, or even if you have a low score. Having one can give you credit if your issuer will report the information to the bureaus. It is also strongly suggested for you to apply for a major credit card from one of the four: Visa, MasterCard, Discover and American Express. The last tip suggested is for you to get a gas store card. This is recommended if you find it difficult to get a regular credit card. And not only that, if you are only starting to build your credit information, producing small monthly charges and settling them in full on time will make wonders on increasing you credit score quickly.
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