How to Increase Your Credit Score
Here are 5 simple tricks to help Increase your credit score. If you want to learn some of the secrets regarding your credit score, please check out our other credit guide.
Always pay your bills on time.
Do not apply for credit too frequently.
Keep your balances low.
Fix any mistakes with the major credit bureaus.
Hang on to your old card.
Late payments and collections can have serious consequences on your credit score. Your payment history is a major factor as it represents 35% of your credit score.
This will decrease your credit score because this is a characteristic of high credit risk groups.
If you're "maxed" out on your credit cards, this will affect your credit score negatively. A good rule of thumb is to keep your credit card balances at or below 25% of your credit limits.
It is important to do this as soon as you discover the discrepency, because it can take time and have significant impacts. This entails getting in touch with the lender to verify that the information is accurate. If the lender can't confirm or doesn't respond, then the information is removed from your credit report. Also, if you have paperwork proving that the information on your account is false, send it to the credit bureaus and keep copies of everything.
Credit Bureaus reward loyalty. 15% of your credit score is based on the length of your credit history, and that includes the age of your oldest account as well as the average age of all of your accounts. In other words, lenders want customers who will stay around and not move their acounts to whoever has the lowest current introductory offer.