Improve Your Credit Score
While getting a perfect credit score may be a lifelong pursuit for those who have made major credit mistakes, there’s no better time to start than now. And everyone with less than perfect credit can see marked improvement in their score within a few months by following simple guidelines.
Be diligent about making at the least the minimum payments on debts. In the process, if the budget allows for more than minimum payments, apply the surplus to debts which carry the highest interest rates. In the long run this means less debt, faster. Right now, those punctual payment reports to the credit bureaus will boost credit scores.
Don’t max out credit cards. In fact, keeping balances under 30% of the available credit is best. The ratio of debt to available credit accounts for a substantial part of one’s credit score. When preparing to apply for new credit, like a mortgage or auto loan, try to keep current balances under 10% of available credit to have the best score possible.
And be certain that the score you have is the score you’ve earned. Nearly 80% of individuals have a mistake not in their favor on their credit report. Review your report at least once a year and report errors in writing by contacting creditors and the credit bureaus.
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