Easy Ways to Boost Your Credit Score

Credit & Debt, Living & Spending
on June 19, 2013

Whether you’ve had some recent credit issues or you simply want to raise your score as high as you can, raising your credit score takes time and dedication. It’s very easy to lower your credit score, but rebuilding and/or raising your score takes time. While it isn’t going to happen overnight, it is easy to raise your score provided you have the patience to understand it will take months to see an improvement. Saving money starts with a good credit score.

Lower Your Balances
Ideally, you should pay off your credit card balances in full each month. However, that’s not always possible for some consumers. If you have a credit card balance and you want to raise your credit score, you need to lower those balances. Keeping the balance on your cards at less than 10 percent of the available credit will help you raise your credit score. For example, if your credit card has a $10,000 limit, you need to keep your balance at or below $1,000. You should start saving money now to lower your balances.

Pay On Time Every Time
If your credit card payment is due on the 10th and you make your payment online at midnight on the 11th, you are considered late. Even though it’s only one minute past the due date, you just made a late credit card payment that will appear on your credit report. You have to pay on time, every time if you want to raise your credit score.

Get Rid of Small Cards
You can start saving money and building your credit score significantly if you get rid of small balances. For example, if you have a $100 balance on a card with a $500 limit, pay it off. Having small balances on small cards hurts your credit score.

Don’t Apply for Numerous Accounts
One of the biggest mistakes many people make when trying to raise their credit score is to apply for every single credit offer they encounter. Yes, it’s tempting to apply for that airline credit card to receive the 50,000 bonus miles you get upon approval but even if you have no intention of using that card for anything else, the application puts a dent in your credit score. Every time you apply for credit of any sort your credit score drops three to five points. That means that every store card you apply for to get that application discount actually costs you more than just paying for your items without the 15 percent discount.

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