What is the best way to improve my credit?
jen1313 asked:
I would like to get my credit score higher but Im not sure how to go about it. Ive seen lots of credit cards that say they improve your credit score- but id like to find a way to improve it with out opening a credit card from these fly by night companies. Any advice?
I would like to get my credit score higher but Im not sure how to go about it. Ive seen lots of credit cards that say they improve your credit score- but id like to find a way to improve it with out opening a credit card from these fly by night companies. Any advice?
pay your bills
Credit scores are based on 4 basic factors, in order of importance:
1. Make payments on time every month.
2. Keep your total credit used vs. total credit available ratio below 30%.
3. Length of credit history
4. Inquiries for new credit.
To maximize your credit score, you should do the following:
1. Make at least the minimum payments on time every month for all credit cards and loans.
2. Keep your credit balances below 30% of credit available.
3. Do not close any credit cards that are unused or seldom used, unless they have annual fees.
4. Do not apply for new credit very often. Limit new credit applications to no more then 4 times a year. This includes all credit applications like credit cards, auto loans, instant store credit, etc.
There is some room to play here. For example, let’s say you’ve only got 1 credit card with a limit of $2,000 and you’ve got a $1,000 balance. If you have no or few other inquiries, go ahead and apply for another card.
You’ll take a small hit right away based on the new inquiry, but the additional credit available, let’s say $1,500 for example, will reduce your credit ratio. Now you’ve only got a $1,000 balance on $3,500 of available credit. Your credit ratio is now only 28.5% and that will boost your score.
i am assuming you have at least one major credit card — that is all you need — use it but always pay full amount each month on time and reduce any otherf debt you have!!!
Why don’t you get a secured card, use it only for one year. Put down like 300 dollars and spend and pay it right back, and continue this for one year. It will help your credit a lot, I did that.
It is not about how many you have, it is about how well you maintain the ones you have, just a couple. No late or slow pays. an open bank account, and not being maxed out, will keep your scores up.
Pay all bills on time, try to not get as many inquiries on your credit as possible. The more inquiries you have the lower your score you will get. If you have a loan and pay it off that really helps your cretid and a credit card does help, but only if you use it correctly. Do not borrow more than 1/3 of your approved amount on your card. It is also best to be able to pay the ballance on your credit card each month.
bite the bullet and pay your bills, on time, for as long as you can… if you can get an unsecured card do so and use it a lot but always pay the balance.. soon they will bump up your limit and it goes on from there..
The best way to improve your credit is by having someone that is credit responsible add you as an authorized user on one or two of their card(s) that has a long history. The card(s) must have little balances with much available balances. That person don’t have to worry about you using the card by not giving you a card. They’re simply just making your credit look better with established history.