5 Ways To Raise Credit Score
by: Gary Gresham
It's not as hard as you think to raise credit score. It's
a well known fact that lenders will give people with higher
credit scores lower interest rates on mortgages, car loans
and credit cards. If your credit score falls under 620
just getting loans and credit cards with reasonable terms
There are more than 30 million people in the United States
that have credit scores under 620 and if youre probably
wondering what you can do to raise credit score for you.
Here are five simple tips that you can use to raise
1. Get a copy of your credit report
Obtaining a copy of your credit report is a good idea
because if there is something on your report that is incorrect,
you will raise credit score once it is removed. Make sure
you contact the bureau immediately to remove any incorrect
Your credit report should come from the three major bureaus:
Experian, Trans Union and Equifax. It's important to know
that each service will give you a different credit score.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit
score. Your recent payment history will carry much more
weight than what happened five years ago.
Missing just one months payment on anything can knock
50 to 100 points off of your credit score.
Paying your bills on time is a single best way to start
rebuilding your credit rating and raise credit score for
3. Pay Down Your Debt
Your credit card issuer reports your outstanding balance
once a month to the credit bureaus. It doesn't matter
whether you pay off that balance a few days later or whether
you carry it from month to month.
Most people dont realize that credit bureaus dont
distinguish between those who carry a balance on their
cards and those who dont. So by charging less you
can raise credit score even if you pay off your credit
cards every month.
Lenders also like to see a lot of of room between the
amount of debt on your credit cards and your total credit
limits. So the more debt you pay off, the wider that gap
and the better your credit score.
4. Dont Close Old Accounts
In the past people were told to close old accounts they
werent using. But with today's current scoring methods
that could actually hurt your credit score.
Closing old or paid off credit accounts lowers the total
credit available to you and makes any balances you have
appear larger in credit score calculations. Closing your
oldest accounts can actually shorten the length of your
credit history and to a lender it makes you less credit
If you are trying to minimize identity theft and it's
worth the peace of mind for you to close your old or paid
off accounts, the good news is it will only lower you
score a minimal amount. But just by keeping those old
accounts open you can raise credit score for you.
5. Stay Out Of Bankruptcy
Bankruptcy is the single worst thing that will destroy
your credit score. Bankruptcy will lower your credit score
by 200 points or more and is very difficult to come back
Once your credit score falls below 620, any loan you get
will be far more expensive. A bankruptcy on your credit
record is reported for up to 10 years.
The reality of a bankruptcy is it will limit you to high-interest
lenders that will squeeze out high interest rate payments
from you for years.
It is better to get credit counseling to help you with
your bills and avoid bankruptcy at all costs. By getting
credit counseling instead of declaring bankruptcy you
can raise credit score over a much shorter period of time.
Copyright © 2005 Credit Repair Facts.com All Rights
About The Author
Gary Gresham is a mortgage loan officer and the webmaster
for http://www.credit-repair-facts.com He offers you credit
information, debt elimination programs and informative
facts that give you the knowledge to correct your own
credit and credit report. For more credit related articles
go to: http://www.credit-repair-facts.com/articles_1.html.