| Add
Home Equity Loans Wizard to your Favorites
How to Improve your Credit
Score
Looking for a higher credit score?
There's good reason to do so -- a higher score
can give you a greater array of financial options and more
favorable credit offers. Even if you already have a good score,
there's always room for improvement.
Keep in mind, however, that your credit score
is based on your history of borrowing and
repaying money, so there's no way to instantly create a great
credit score, but there are a few ways to give it a boost.
Short-term tips to boost your FICO (credit
score):
- Close unused lines of credit - having open lines of credit
tells lenders that you have the option to borrow X number
of dollars. So, that is a risk. If you have lines of credit
(like I had a Sears card I never, ever used), then you can
close those accounts and lower your "risk."
- Check your report for any errors - more often than you
might think, creditors report incorrect or incomplete information
to the reporting bureaus. In fact, there are cases when
lenders report information to the wrong account altogether!
Don't be a victim of this when it is easy to fix.
[Learn more about correcting
credit report errors]
- Check your report for omissions - if you have items requiring
monthly payment and a credit check to obtain (such as a
cell phone, car loan, et cetera), then your payments should
be reflected on your credit report and help you. However,
there are many times when companies fail to report such
things, and your credit report does not see the benefit
of your timely payments. Be sure all recurring payments
(that reflect well upon you) are showing in your credit
report.
Long-term tips to boost your FICO (credit score):
- Naturally... pay your bills on time - if you are going
to be late on a payment or absolutely cannot make payment
for a given month, try contacting the lender to work something
out. If you do not abuse this privilege, you may find it
work out very well because lenders like to know what's going
on. If you miss a payment unexpectedly, that is MUCH worse
than missing a payment that the lender knows he will get
at a certain point in the future.
- Open new lines of credit - if you credit is sufficient
to open new lines of credit, consider opening a small line
of credit at a favorite retail store or somewhere you shop
frequently. Then, instead of paying cash; use your new credit
each time. Be sure to pay it off every month -or even better
carry a small balance (something like $10-$100). Do not
open new credit you cannot afford!
- Get secured loans - if you have a little extra cash saved
up, you might want to consider taking out a small secured
loans at your bank. As an example, I once took out a $2,500
loan secured by a $2,500 certificate of deposit. I paid
on it every month on time and my total cost over the course
of paying on it for that year was about $80. The benefit
is gave my credit rating was priceless!
I hope this information helps get you on your way to better
credit, and just as a sidenote; my credit enjoys such a great
FICO score because of these very same tips I'm sharing with
you.
I currently have a score of 820 and that is with an existing
mortgage, two car loans, and two open, high-limit credit card
accounts. So, I know my stuff when it comes to credit. However,
as always, you should consult your financial advisor before
taking anyone's advice for your particular situation.
Get
your FREE credit score and more! 
Back
to Home Equity Loans Resources
Back
to Home Equity Loans Application
|
