3 Ways to Improve Your Credit Score

April 25, 2012 by  Filed under: Credit 

When Sunny Roseman reveals that his sleep number is higher than his credit score, the crowd laughs nervously… Theirs isn’t much better.

Everyone wants their fair share of the credit pie, but how are they going to get it when their score is in the toilet with all the other financial turds? Darrell Hornbacher, Denver credit repair King wraps it all up in a quick circle pie, explaining that your credit score is made up of paying your bills on time, 35%, credit utilization (I hate that word) rate, 30% of what is otherwise known as a line of credit, or rotating charge cards, 15% is made up of your credit history, or how long you’ve had credit, 10% new credit inquiries, and 10% mixed debt types, including your home loan, your auto loan and charge cards.

Perfect credit?

For the average person hasn’t existed, but it can. A credit score of more than 700 is considered high, with average scores ranging closer to 665. But how does a working girl acquire a score that looks like that?

Nobody ever said managing your financial situation will be easy, but there are a few quick tricks to help you increase your credit score.

1. Fix it. Remove all the crud off your credit report by first getting a FREE report from one of those amazing companies that gives you one with no fees. Then… Write all creditors who have bad stuff on your report and ask them to take off any inaccurate or illegal dings.

2. Carry 3 cards: Visa, Mastercard, Discovery or American Express, with 23 – 27% capacity. Meaning if your credit limit on the card is $1,000 you carry no more than $270.00 of credit on the card. Pay most of it off every month, but better yet, pay your payment on the due date and a little extra 10 days later, just enough to keep it under the amount and keep paying on it about every two weeks.

3. Make sure all line of credit or revolving credit accounts are reporting your payments as installment payments on an “installment” loan. If not, change the loan to an installment loan, because they report better than revolving credit loans.

These tips will fix your credit score, improve your credit and make it more likely that you will be able to finance a home loan. Business loans and professional financing options are more likely to be obtainable if your personal credit is in better shape.

Alice C. Edgars understands the need to improve your financial well being and maximize your financial impact with a great credit score. Visit http://plusfindyourdream.com and get a subscription to her amazing, informative newsletter. You’ll understand killer values and lifestyle financial impact while you find your dream at PLUS!

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