Money Talks: 3 Best Tips to Higher Credit Scores
Mon, 28 May 2012 11:30:00 GMT —
Whatever game you play, there are always quick tips you can use to improve your score.
There are also simple things you can do to improve a much more important score in your life: your credit score.
Now, you're not going to get immediate results, but there are things you can do to clean up a credit score in as little as two to three months.
Step one? Go to annualcreditreport.com and get a free copy of your credit history.
When you get it, look for mistakes: late payments that weren't late, debts that aren't yours, old negatives that haven't been removed. If you find something wrong, challenge it.
Step two: pay down high balance cards.
The idea is to have your balances at no more than 30% of your available limit. So if you've got a credit card with a $1,000 credit limit, you shouldn't carry a balance of more than $300 on it.
Can't come up with the cash? Then try step three: increase your credit limits to accomplish the same thing. If you owe $1,000, call the bank and raise your credit limit to $3,000.
Then there are things you don't want to do. Don't close old accounts, even if you're not using them: length of your history matters. And if you're about to borrow big, like for a mortgage, don't take out new credit. Keep inquiries to a minimum.
That's your quick guide to raising your credit score, but there's more to know. And it's waiting for you at MoneyTalksNews.com.