5 Quick Steps to a Better Credit Score
Learn how to manage your credit score and improve your creditworthiness
Think of your
credit score as a picture of your credit risk. This picture reflects
your risk at a specific point in time. A picture does not change;
however, when you take another one, you will probably look a little
different. Similarly, when your credit information changes, your score
will also change to reflect the updated information.
There are steps you can take to ensure that each
time a new
“credit picture” is taken, it shows your best side. By observing the
following guidelines, you can influence your credit worthiness for the
- Be punctual- Pay all your bills on time. Late payments,
collections, and bankruptcies have the greatest negative effect on your
- Check your credit report regularly and take the necessary
steps to remove inaccuracies – Don’t let your credit health suffer
due to inaccurate information. If you find an inaccuracy on your
credit report contact the creditor associated with the account or the
credit reporting agencies to correct it immediately.
- Watch your debt – Keep your account balances below 50% of
your available credit. For instance, if you have a credit card with a
$1,000 limit, you should try to keep the balance owed below $500.
- Give yourself time – Time is one of the most significant
factors that can improve your
credit score. Establish a long history of paying your bills on time and
using credit responsibly. You may also want to keep the oldest account
on your credit report open in order to lengthen your period of active
- Avoid excessive inquiries – A large number of inquiries
occurred over a short period of time may be interpreted as a sign that
you are opening numerous credit accounts due to financial difficulties
or overextending yourself by taking on more debt than you can easily
your credit report and score NOW!