Start Seeing a Credit Score Increase

Getting a Higher FICO Score

Have you ever heard from a lender or bank that you are just under the line of receiving credit and you just need to improve your credit slightly? How do you go about getting a credit score increase? Here are some great ideas:

Make every payment on time

This is by far the most effective way of getting a credit score increase. Make sure there are no errors, set up all your payments on automatic debit so you don’t forget when something is due.

Keep low balances

Balances below 25% of your available credit will keep your score strong. Avoid high balances and especially avoid over limit balances. Consider consolidating your debt into a small loan and keep your credit line and credit card balances low. Loans with fixed payments always will increase your credit score more than revolving credit.

Keep your inquiries down

A few inquiries on your credit is normal, but avoid chronic credit shopping as that will lower your score and make you look like you are having some major financial problems that could cause you to default on payments.

Make arrangements to avoid collections

Collections can really affect your score; most companies don’t report anything on your credit until they have been past due for over ninety days. If you make an arrangement with a creditor this will avoid a collection report, as most creditors don’t want to incur the cost associated with seeing something go to collections.

Constant monitoring of your report

Credit reports are filed with inaccuracies, so keep a good tab on your report by checking it monthly on Equifax or Transunion. There will be some charges associated with it, but it will be well worth your while. Check your contact information as well, as people with common names could mistakenly have things reported on your report. Fixing something on your report is relatively easy if it is found quickly.

The biggest secret to a credit score increase is time. Past mistakes will eventually come off your credit and the most weight will be given to your more recent credit activity. If you are patient, and maintain good credit habits you will be able to have a strong score and obtain the best loan products available to you and with incredible interest. Poor credit scores can cost you thousands in interest so the time associated with fixing your score is well worth it.