Category — Your Money

“I’m on a mission to help as many people possible live their dreams and reach their goals.”

I got a call from my younger brother today, telling me that he was moved by “The Strangest Secret In The World” (the post just below this one). We chatted for a bit and before hanging-up he asked, “What’s with 5 Steps For a Flat Stomach“, I reminded him of what I wrote on “Off To a Good Start” - I’m on a mission to help as many people possible live their dreams and reach their goals - hence the purpose of this blog.  On this blog I will be discussing different topics on each facet of our lives, posting motivational, inspirational and music videos to assist with reaching these dreams and goals.  It’s my way of giving back for the abundance in my life.  So without further ado..

Here are 5 ways to improve your credit score:

1.  Pay your bills on time.

Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 707 can raise their score by as much as 20 points by paying all their bills on time for one month.

2.  Keep balances low on credit cards.

High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.

3.  Don’t open a number of new credit cards that you don’t need.

New accounts will lower your average account age, which could actually lower your score by up to 10 points.

4.  Have credit cards - but manage them responsibly.

In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.

5.  Closing an account doesn’t make it go away.

A closed account will still show up on your credit report and may be factored into the score.

Remember, It Takes Time

It can be frustrating, but working to establish or improve your credit history takes time. There isn’t an overnight solution, so you have to approach this as a long-term goal. If you’re just beginning to establish credit for the first time, take things slow and begin by opening a few small accounts. With these initial accounts, make sure you use the credit wisely and develop sound habits. It won’t be long and you’ll be on your way to building a great credit history.

If you already have a credit history but it has been damaged by something mentioned above, don’t worry. While you won’t be able to increase your score 200 points in the span of a a couple months, following the suggestions above will put you on the right track to begin increasing your score.  But whatever the situation, it is important to monitor Your FICO® score & Equifax credit report.