How To Keep Your Credit Score Out Of The Dumper

Those that have a credit score of 730 and above are the fortunate few in the country who are considered to have excellent credit

. The average credit score or FICO score is around 690. And, with the economy slowly going downhill, more and more people are finding their credit scores drifting into dangerous territory - 550 or less.

A low credit score does you no good at all. So, if your score is low, you want to do everything you can to bring it up. Doing so will save you thousands of dollars and more in the long run. Bringing your credit score up is not too hard to do, if you know the factors that determine the score. Here are some tips to help you.

Keep to a minimum the number of credit accounts that you sign up for, even though it can be extremely tempting to take advantage of some of the great offers that come through the mail. Because of these offers, many people find themselves signing up for a new card offering cash back rebates, frequent flier miles, or other incentives.

Up to a specific range, however, every extra card or line of credit that you open up will result in your credit score taking a hit. So, if you have a lot of cards and want to get your credit score up, start to cancel some of the cards that you really don't need.

If you apply for too many pieces of credit in too short of a time frame, your credit score will take a hit. For one reason, this is a pattern used by many con artists. For example, applying for 4 credit cards over the course of a 3 month period will raise some red flags. However, multiple inquiries against your credit file in a thirty day period for an auto loan or a mortgage will not cause your credit score to be lowered.

In situations such as this, the credit agencies know that the inquiries are all relating to the consumer possibly opening up only one credit line. Therefore, internally, they will treat these collection of inquiries as only one.

Try not to exceed your credit limit on your credit cards. Credit companies see this as another red flag that will cause your credit score to be lowered. Try to pay off your debts as quickly as you can and try to avoid rolling over balances from month to month.

Any time you get a new credit accounts, it will probably decrease your credit score a bit, at least temporarily. Over time, however, as these accounts become aged, assuming that the accounts have been handled responsibly, your score will improve. All of these tips can go a long way towards helping you to build a positive credit history and getting your credit score into a healthy range.

How To Keep Your Credit Score Out Of The Dumper

By: Susanna Berlatsky

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