Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

How To Raise Your Credit Score

Is it really that important to raise your credit score? Maybe. Lenders have "break points" between scores that get you one interest rate or another. Suppose you have a score of 688, and the lender drops the mortgage rate by .5% at 690. Those two points can cost you an extra $20,000 in interest on a $170,000 loan (over 30 years at 6.5% instead of 6%). Is that important enough for you? What can you do?

Eight Ways To Raise Your Credit Score

There are ways to raise your credit score. Some of them take more time than others to have an impact, but if you start working on it now, you can boost that score before long.

1. Check credit reports for errors. If there are errors that are hurting your score, contact the credit reporting agency that issued the report and challenge them. The agency is obligated to investigate and correct any mistakes within thirty days. If a creditor doesn't respond to their inquiries, they have to automatically remove the item in question (you may have to remind them about this part of the law).

2. Pay off balances every month. It is just good for your future, as a way to keep you out of excessive debt. It can save you a lot in interest also. Finally, it demonstrates your ability to manage your debt, and so increases your credit score.

3. Have the right number of credit cards. At least two is best, but having more than five or six can actually lower your score.

4. Pay bills on time. Borrow money to get those bills paid on time, if you have to. Paying on time has the biggest positive impact on your credit score. Unfortunately, paying off old delinquencies won't immediately raise your credit score, because these will still show as being paid late, but start paying on time now, and with time, these old late payments are deemed less important.

5. Manage your credit card balances. It's best for your credit score if the balance on a given card is less than 50% of the limit on that card. Manage your use of your cards to keep the balances below this amount. If, for example, you have three cards with limits of $2,000, $3,000 and $2,500, it is better to have a $600 balance on each than $1800 on one.

6. Don't apply for too many cards and loans. These applications generate inquiries on your credit reports. Having oo many inquiries in a short time lowers your score. Avoid applying for a lot of cards in a given year.

7. Keep and cancel the right cards. When you close accounts or cancel cards, do it right. Old accounts are better than new ones for your credit score. Keep those old ones open, even if the balance is zero. Also, because it's best to keep balances below 50% of the card limits, you might consider canceling your lower-limit cards if you regularly keep balances on your cards.

8. Be careful about whom you borrow from. Furniture stores and others help you finance your purchases, but through finance companies. This can lower your score. If you can't pay cash, it is better to borrow the money from a bank or credit union.

Maybe you noticed that this is almost a list of things that lower your credit score. It basically is, and you should keep that in mind. Paying things bills on time and avoiding the things that lower your score - that is the best way to raise your credit score.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

This article is free for republishing
Source: http://www.articlealley.com/article_76356_19.html


Don't Miss...
  1. What Credit Inquiries do to Your Credit Score.
  2. How to Increase Your Credit Scores with One Short Phone Call
  3. Unsecured Loans To Avoid Negative Inputs On Your Credit Report!
  4. Bad Credit Mortgage Refinancing - Yes, You Can
  5. Mortgage Bad Credit History: Important Facts You Need to Know
  6. Make My Credit Score Shine - 3 Steps to a Higher Score!
  7. Consolidating Student Loans: Don’t Keep the Debt Records, Just Focus On Your Career
  8. How to Create a Good Credit Score
  9. An Insight Into The Commercial Loans And Their Requisites
  10. Unsecured Loans: Makes Your Money Availing Without Pledging
  11. Homeowner Loans : Your home will fetch money , while you still live in .....
  12. Payday Loans UK: Make Way To Get Instant Money
  13. No Credit Check Loans: Still Gives Money Break For You
  14. Think Credit Scores Do Not Apply To Young Adults? Think Again.
  15. Want to Improve your Credit Score
  16. What is a Good Credit Score ?
  17. No Credit, Slow Credit Or Bad Credit - Understanding Credit Score
  18. Cash Loans: Save You From Money Deficit Through
  19. Free Credit Score Check
  20. Use Credit Cards Frequently To Raise Your Credit Score
  21. How Home Loans Work
  22. Quick Unsecured Loans: Way To Get Fast Money Without Collateral
  23. You Can Refinance Your Mortgage - Even With Bad Credit
  24. The Big Pitfall Of Unsecured Loans
  25. Understanding Credit Scoring And Its Affect On Applications For Mortgage Refinancing or Second Mortg
  26. Homeowner Loans : A 3D View of Ownership!
  27. Bad Credit Payday Loans: Help Mend Your Staggering Credit
  28. Credit Score Mythology
  29. Secured Loans UK – Wallet full of Money
  30. Bad Credit Loans: Keep Records Of Money Earned And Spent
Latest...
  1. High Cost of A Low Credit Score!
  2. Want to Improve your Credit Score
  3. Raise Your Credit Score In 30 Days!
  4. Boosting Your Credit Score Homeowner Debt Consolidation Loans
  5. Raise Your Credit Score & Reduce That Car Payment!
  6. Rapid Credit Score Recovery After Bankruptcy!
  7. Facts for People with Bad Credit Score
  8. Tenant with Bad Credit Score? Here is the Best Loan Option for You
  9. 10 Tips To Improve Your Credit Score
  10. When Your Credit Score Isn't Really Your Credit Score

© Edge of Bankruptcy 2008. All Rights Reserved