Easy yet Effective Ways to Improve your Credit Score

Author: marco

Author: marco

If your credit score has been taking a beating during the last three years or so, you should not despair. First of all, you are among 30 million persons in the United States with a score of 620 or under and/or major negative marks on their credit reports. There can be credit scores as low as 300, but anything 620 or under places you in a position of having to pay sky-high interest rates to get any kind of credit. By the way, once you have hit 700 on your credit score, anything that you can do will have much less force than if your score is at 600. If you are above 760, you could only go up by a couple of points with anything that you could possibly do, but those couple of points will not make a major difference with lenders. It is not even worth the effort to try to raise 760 because you will already be getting the best terms and rates available in the market. However, and this how crazy the credit scoring world can be, if you have a bunch of negatives on your credit report, one more will not make much difference. However, if you are around 700 and heading toward excellent, one major negative, one late or missed payment and you will take a hit of about 100 points or even more, so it pays to be careful when you have good credit. If your credit is horrible, do not despair and do not panic thinking that you will never be able to buy a house or car unless you pay cash. The first thing you need to do is to stop racking up big balances on your credit cards. If you do, it will make no difference if you pay them off at the end of the month. Paying them off is financially prudent, but keeping your balances low is good for your credit score. If you can get your charges down to around 30 percent or less of your credit limit, you will increase your score. That is how the system works, so use it to your advantage by learning how to work within it. Do you have an old credit card with almost no balance that you only use for special occasions like your anniversary or Valentine's day? Well, it is time to use it more often and make small charges. If you do not use your old credit cards, they stop being updated by the issuers, and they will no have much weight in your scoring formula. However, the older your credit history, the better, so the smart thing to do is to use those old credit cards more often, but keep the balances under 30 percent. Another thing that you can do to really help your credit score is to start paying on time, each and every time. You need to be like clockwork and you will see your credit score improve as you become more dependable. If you have a debt and you have been late with payments, start paying on time for about a year and ask for the account to be re-aged. Previous delinquencies will get erased and your credit score will not have those negatives. Time, perseverance and discipline are what will help you heal your credit score if use easy yet effective techniques.About the Author:

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