More Tips on Repairing Credit

by Debbie Vasen | More from this Blogger

21 Jan 2008 12:26 PM

To continue our discussion from yesterday, you have lined up all your important credit documents and set up a reasonable budget. The next steps are some specific tips you can do to get that credit score up a little quicker.

With a goal of 720, your score is best improved by regular full payments to all your accounts, ON TIME. Even one late payment can dramatically affect your score and take months or years to remedy. Always, always pay on time... even if all you can do is make the minimum. Pay on time!

In addition, a few other factors exist that the credit bureaus use to evaluate your risk - which is what your score indicates. How risky you are as a debtor. These are a little less obvious, but they do make a difference.

The first is how much of your credit you actually use. Whether you pay your balance off each month or carry it over, creditors look at what percent of your credit limit you are using. Try to keep it to 25 percent as a maximum. Creditors view you as more risky if you regularly max out your credit limit. Charging less debt is one solution. Raising your credit limit is another. It can't hurt to call your credit card company and ask for a credit limit increase.

Avoid opening and closing accounts. Every inquiry to your report hurts your score. Therefore, only open up new accounts you really need. By opening up that Target credit card just to get the 15% discount... you are hurting your credit. Is it worth that 15%?

The same goes for closing accounts. You enhance your credit score with a long history. If you have cards you don't use, that is okay! Try to always keep your oldest accounts, even if you don't regularly use them.

If you start getting serious about your credit, you can start to reap the benefits sooner than later. Arm yourself with some good information... then get out there and use it!

Related Articles:

*Repair Credit

*Credit Freeze

*Collection Activities

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

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