1. Pay your bills on time. Up to 35% of your credit score is based on this one tip.
2. Avoid excessive credit.
3. Pay down your debts. This will boost your credit score faster.
4. Have a range of credit types. Lenders like to see that you can handle different types of credit such as a mortgage, car loans, and credit cards.
5. Look out for identity theft. Always check your account statements at least once a month and report any suspicious activity immediately.
6. Beware of debts and credit that you don't use. Lenders are afraid that you might overextend yourself with several open lines of credit.
7. Be careful of inquiries on your credit report. If you have lots of inquiries on your report, it may appear that you are shopping for several loans at once and more of a risk.
8. Contact creditors as well as credit bureaus when correcting inaccuracies in your credit report.
9. If you have bad credit, establish better credit by taking out credit and repaying it quickly.
10. Try secured credit if you cannot qualify for other types of credit.
11. Don't choose bankruptcy as an easy out.
12. Learn to budget. Poor credit is generally caused by overspending. A budget can tell you how much you should be spending on each item in your life.
13. Get out of the spending habit. Instead of buying a book, go to the library. There are several way you can save money and pay off your debts faster by spending less.
14. Save. Most banks and employers will let you deduct a certain amount of money from your paycheck and put it into investments.
15. Keep track of your money. Impulse spending really adds up.
16. Don't move around a lot. Lenders like stability.
17. Don't change jobs frequently. Again, lenders like stability.
18. Avoid changing credit companies and credit accounts a lot. Switching accounts makes you appear fickle and less than reliable. Instead, see if you can negotiate with your current company to get a better interest rate.
19. Always be sure that your creditors know your current address. It may make you look like a deadbeat debtor which will cause your credit score to plummet.
20. Set aside a regular day, time, and place for paying bills. This will let you take care of your finances on a regular basis.
Tuesday, March 25, 2008
Understand the Calculations
There are a number of tips that you can use right now to improve your credit score. A credit score is used by lenders, card companies and several other entities to gauge credit worthiness. Understanding how it is calculated, using credit responsibly and utilizing a credit monitoring program are some of the things you can do to quickly improve your score.
Credit Score Tip: Understand The Calculations
Scores are calculated using a number of criteria. These include:
• Payment performance history; the number one tip is to pay bills before they are due every month.
• The current level of debt affects your score and helps lenders and credit card companies determine the additional amount of debt that can be tolerated.
• The length of credit history also impacts your score. In the old days, experts advised closing old accounts but now we're told to keep accounts with solid payment histories open.
• Multiple credit card and loan applications at one time may indicate some financial issues or problems and are factored into the score.
• Different types of accounts in a credit history can improve a credit score. Lenders like to see a mix of credit cards, loans and other lines of credit to see how effectively the debt is managed.
Credit Score Tip: Improve Your Score with a Credit Monitoring Program
Scores improve with a credit monitoring program. Ordering a credit report offers a starting point to understand how credit worthiness is determined by lenders and card companies. Experian's Triple Advantage credit monitoring program provides a credit report, current score and tips on how to improve. When you order your report, verify that all information in your history is accurate. Errors in credit reports are not uncommon and it's your responsibility to fix any mistakes. Reporting errors can be easily corrected by contacting the reporting credit bureaus. Monitoring programs will also immediately notify you about any suspicious activities on your credit report.
Credit Score Tip: Understand The Calculations
Scores are calculated using a number of criteria. These include:
• Payment performance history; the number one tip is to pay bills before they are due every month.
• The current level of debt affects your score and helps lenders and credit card companies determine the additional amount of debt that can be tolerated.
• The length of credit history also impacts your score. In the old days, experts advised closing old accounts but now we're told to keep accounts with solid payment histories open.
• Multiple credit card and loan applications at one time may indicate some financial issues or problems and are factored into the score.
• Different types of accounts in a credit history can improve a credit score. Lenders like to see a mix of credit cards, loans and other lines of credit to see how effectively the debt is managed.
Credit Score Tip: Improve Your Score with a Credit Monitoring Program
Scores improve with a credit monitoring program. Ordering a credit report offers a starting point to understand how credit worthiness is determined by lenders and card companies. Experian's Triple Advantage credit monitoring program provides a credit report, current score and tips on how to improve. When you order your report, verify that all information in your history is accurate. Errors in credit reports are not uncommon and it's your responsibility to fix any mistakes. Reporting errors can be easily corrected by contacting the reporting credit bureaus. Monitoring programs will also immediately notify you about any suspicious activities on your credit report.
Tips to Help Improve Credit Scores
Pay bills on time to build a solid credit history. Late payments can negatively impact a credit report. Negative entries in a credit history can result in a diminished credit score and decreased opportunities to get the best loan rates. Paying bills on time is just one of the many factors included in calculating a credit score. Tips to build credit histories include responsible credit card use and understanding how credit scores are used.
Tips to Help Improve Credit Scores
Paying bills on time can help improve a credit score. Credit scores factor in a lot of information including payment delinquency, amounts of credit and credit limit balances. Your credit score will quickly improve with additional positive payment histories in your credit report. In addition to mortgage lenders and credit card companies, other entities now report payment history to the credit bureaus. More and more frequently, utilities companies report account information to the credit reporting agencies. If you aren't sure, ask the companies you deal with if they report payment history to the credit bureaus.
How Credit Scores and Credit Histories Are Used
Credit scores are used to determine credit worthiness and general fiscal responsibility. Mortgage lenders use credit scores to determine who is eligible for the best loan rates. In addition, credit history is used by hiring companies to determine whether a prospective employee is right for the job. Credit card companies use credit scores to decide what interest rates and promotional periods of interest rates to offer new credit card applicants. A credit history may also be used by landlords, who may require additional security deposits or other fees from people with a poor credit score.
More Tips to Build Your Credit History
A credit report is impacted by a number of factors; paying bills in a timely manner is just one way to build a good credit history. People who frequently have late payments noted in their credit score, or have too many credit cards and lines of credit or have maxed out their lines of credit won't be eligible for the best credit card and loan rates. Inquiries by lenders, prospective employers, landlords and other interested parties also play a small part in calculating the credit score. Ordering your credit score won't negatively impact your credit history and can help you find deficiencies and areas for improvement.
Tips to Help Improve Credit Scores
Paying bills on time can help improve a credit score. Credit scores factor in a lot of information including payment delinquency, amounts of credit and credit limit balances. Your credit score will quickly improve with additional positive payment histories in your credit report. In addition to mortgage lenders and credit card companies, other entities now report payment history to the credit bureaus. More and more frequently, utilities companies report account information to the credit reporting agencies. If you aren't sure, ask the companies you deal with if they report payment history to the credit bureaus.
How Credit Scores and Credit Histories Are Used
Credit scores are used to determine credit worthiness and general fiscal responsibility. Mortgage lenders use credit scores to determine who is eligible for the best loan rates. In addition, credit history is used by hiring companies to determine whether a prospective employee is right for the job. Credit card companies use credit scores to decide what interest rates and promotional periods of interest rates to offer new credit card applicants. A credit history may also be used by landlords, who may require additional security deposits or other fees from people with a poor credit score.
More Tips to Build Your Credit History
A credit report is impacted by a number of factors; paying bills in a timely manner is just one way to build a good credit history. People who frequently have late payments noted in their credit score, or have too many credit cards and lines of credit or have maxed out their lines of credit won't be eligible for the best credit card and loan rates. Inquiries by lenders, prospective employers, landlords and other interested parties also play a small part in calculating the credit score. Ordering your credit score won't negatively impact your credit history and can help you find deficiencies and areas for improvement.
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