subject: Improving Your Credit Score 101 [print this page] Your credit score is a very important three-digit number used to help you qualify for mortgages, auto loans, credit cards, and other loans. If you"re planning to apply for credit anytime soon, it"s a good idea to start thinking about improving your credit score now. There are several things you can do to boost your score, and the sooner you start, the more of an impact you can have.
1. Pay all of your bills on time every month. Late payments lower your credit score, and the longer you go without a late payment, the better your score will get. Many lenders allow you to set up automatic payments, which help ensure that you never forget about a bill.
2. Pay down your credit card debt to decrease your utilization ratio. If your credit card balance is a high percentage of your credit limit, this lowers your credit score. If you"re only using 10 to 30 percent of your available credit, you"ll have a better score. Rather than paying just the minimum each month, pay as much as you can afford to on each credit card.
3. Don"t apply for any new credit. Every time you fill out a credit application, it lowers your credit score a little bit, even if you don"t get the credit card or loan. If you do open a new account, that will lower your score even more. Give your score a break by refraining from applying for credit unless you absolutely need it.
4. Get a free copy of each of your credit reports and check them for errors. Many people find that their credit reports list inaccurate late payments or show accounts that don"t belong to them. If you find these errors, you can dispute them and get them removed from your credit report. This will ensure that your report is accurate and lets you put your best foot forward.
Here at CreditNowUSA, we are happy to help you understand how your credit score works and connect you with professionals who can help you improve your credit.
For more information, go to Credit Score at http://www.creditnowusa.com/Credit-Score
