4 Ways To Increase Your Credit Score
In Credit Repair of CreditGuru (September 2, 2010 7:12 am)
Because of the way credit scores are calculated, some actions you take will increase your credit score better than others. One of the most effective ways to increase your credit score is paying your bills on time and meeting your financial responsibilities. Owing a reasonable amount of money and being able to repay it will show lenders that you take your finances seriously and pose little threat of lost money. There are a few tips that, more than any other, will increase your credit score the most:
Tip #1 – Pay your bills on time.
One of the best ways to increase your credit score is simply to pay your bills on time. An absurdly simple way to show lenders that you take your debts seriously is to develop a history of prompt payments. Every lender desires to be paid in full and in a timely manner.
Tip#2 - Avoid having too much open credit.
You will appear to be overextending your credit if you maintain too many lines of credit or several very large debts.” This means that you can be taking on more credit than you can easily repay. If your debt load increases too much lender know that even though you are regularly paying your bills you are headed for trouble. This type of borrowing will not increase your credit score.
Tip #3 – Pay Down Your Debts
If you have a lot of debt, your credit score will suffer. Paying down your debts to a minimum will help to increase your credit score. For example, regularly carrying too large a balance on your credit card will be less attractive to a lender than someone who has a similar credit card but carries a much smaller balance. If you really want to improve your credit score,start by paying down your largest debt first so that you utilize less of your total credit percentage.
Tip #4 – Have a range of credit types
The types of credit you have are a factor in calculating your credit score. In general, lenders like to see that you are able to handle a range of credit types well. Having some form of personal credit – such as credit cards – and some larger types of credit – such as a mortgage or auto loan -and paying them off regularly is better than having only one type of credit.
No other way works better to increase your credit score.
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