Numbers don't lie.
Lenders base your loan terms on a three digit number they calculate from the information in your credit report the higher
that score, the better your terms. Even a modest improvement in your credit score can make a big difference. For
example, boosting your score from 600 to 620 could save you $100 a month on a $200,000 loan
Do as I say and Consider the following.
1. Review your credit report. You might find erroneous information that's unfairly dragging down your score. For example,
bankruptcies are supposed to remain in your file for 10 years and other negative information for seven.
If old data that should have fallen off your report still exists, ask the credit agency that issued the report to delete it and
any other mistakes you find.
The Two Biggest Factors In Calculating Your Credit Scores.
1. Pay your bills on time. Payment history accounts for 35% of your Fico score making it the single biggest factor in
calculating your credit score. According to MYFICO Credit.com's Simulator missing just 1 payment in the next few months
can lower your credit score by 100 points. One way to ensure making payments on time would be to sign up for monthly
reminders from your creditors.
2. Use your available credit sparingly. The second biggest influence on your credit score is your credit-utilization ratio.
Simply put maxing out your accounts is a big no - no, even if you pay them off every month. Even if you keep a zero
balance on your account you can lower your credit score so you must strike a balance so not to have a negative impact
on your credit score. Try not to use more then 25% of the available limit on a monthly basis.
Piggyback on a relatives credit history. Lenders like to see that you've paid your debts reliably for a long time. If
you have a short or non-existent credit history, build a longer one by holding a card jointly with a relative who has good
credit.
Two credit don'ts
1. Don't close unused accounts, doing so will reduce your available credit, which lenders like to see a lot of.
For example, if you have two cards, each with a $1,000 limit, and you've charged $500 on one card and left the other
card untouched, your ratio would be 25%. Closing the unused card would immediately bump your usage up to 50% and
likely knock down your score
2. Don't make payments late, paying at least the minimum each month is essential for maintaining good credit and if you
are running late don't let the payment continue to slide. You may be thinking there's no difference between one day late
and 30 days late. Late is late, right? Wrong. A payment that's less than 30 days late may not show up on your credit
report but one that's later surely will.
Using these strategies to enhance your credit score can help you qualify for lower interest rates on your debts. Those
reduced rates will leave you with more of your hard-earned money for vacations, retirement and your children's
education expenses. Now that's an achievement worth taking credit for.
Lenders base your loan terms on a three digit number they calculate from the information in your credit report the higher
that score, the better your terms. Even a modest improvement in your credit score can make a big difference. For
example, boosting your score from 600 to 620 could save you $100 a month on a $200,000 loan
Do as I say and Consider the following.
1. Review your credit report. You might find erroneous information that's unfairly dragging down your score. For example,
bankruptcies are supposed to remain in your file for 10 years and other negative information for seven.
If old data that should have fallen off your report still exists, ask the credit agency that issued the report to delete it and
any other mistakes you find.
The Two Biggest Factors In Calculating Your Credit Scores.
1. Pay your bills on time. Payment history accounts for 35% of your Fico score making it the single biggest factor in
calculating your credit score. According to MYFICO Credit.com's Simulator missing just 1 payment in the next few months
can lower your credit score by 100 points. One way to ensure making payments on time would be to sign up for monthly
reminders from your creditors.
2. Use your available credit sparingly. The second biggest influence on your credit score is your credit-utilization ratio.
Simply put maxing out your accounts is a big no - no, even if you pay them off every month. Even if you keep a zero
balance on your account you can lower your credit score so you must strike a balance so not to have a negative impact
on your credit score. Try not to use more then 25% of the available limit on a monthly basis.
Piggyback on a relatives credit history. Lenders like to see that you've paid your debts reliably for a long time. If
you have a short or non-existent credit history, build a longer one by holding a card jointly with a relative who has good
credit.
Two credit don'ts
1. Don't close unused accounts, doing so will reduce your available credit, which lenders like to see a lot of.
For example, if you have two cards, each with a $1,000 limit, and you've charged $500 on one card and left the other
card untouched, your ratio would be 25%. Closing the unused card would immediately bump your usage up to 50% and
likely knock down your score
2. Don't make payments late, paying at least the minimum each month is essential for maintaining good credit and if you
are running late don't let the payment continue to slide. You may be thinking there's no difference between one day late
and 30 days late. Late is late, right? Wrong. A payment that's less than 30 days late may not show up on your credit
report but one that's later surely will.
Using these strategies to enhance your credit score can help you qualify for lower interest rates on your debts. Those
reduced rates will leave you with more of your hard-earned money for vacations, retirement and your children's
education expenses. Now that's an achievement worth taking credit for.
| Paying high interest rates on loans and credit card balances? Don't despair, taking steps to improve your credit score can help you qualify for lower rates potentially saving you serious money. |
Manage Your Credit
Equifax: (800) 685-1111
TransUnion: (800) 916-8800
Experian: (888) 397-3742
TransUnion: (800) 916-8800
Experian: (888) 397-3742
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