Easy Ways to Improve Your Credit Score

There are some simple yet effective ways to help your credit score.  Once you have updated your credit report and got the report as accurate as possible then begin the following suggestions.


1.       Have a major credit card.  Gas cards and department store cards can help build your credit but without a major credit card you will have problems getting into the 700 plus scores.  Major credit cards include Visa, MasterCard, Discover and American Express.  If you don’t have a major credit card then you need to get one.  If your scores won’t qualify for a regular card then you need to look into a secured card.  A secured card will require a deposit into the issuing bank.  Verify that the bank and the card will report to all three credit bureaus.  Additionally, try to get a card that can be converted to a regular card after so many on time payments.

2.       Make payments for every credit card and loan on time.  The best way to confirm that is to make arrangements for automatic payments.  By setting up automatic payments you will never make a late payment again.  You also can setup automatic payments to take the amount you specify, either the minimum payment, a set dollar amount or the balance in full, every month from your checking account.

3.       Never let an account go to collections.  You dispute any amount on a bill then communicate with your creditor.  Because if you have an account that goes into collections you will have a negative mark on your credit report.  The best way to handle it is pay the account and take it to small claims court.  If you have accounts that go to collections and then become judgments against you will really hurt your credit score.  These may take up to seven years to no longer affect your credit score.

4.       Reduce your debt.  pay large portion of your credit score is based on how much of your available credit are you using.  The credit bureaus use a formula that likes to see large gaps between your available credit and your balances.  The scores will improve dramatically when you pay down your credit card debt.  So having a small balance on several cards better than a big balance on one card.

5.       Monitor your balance on your credit cards.  Even if you pay your cards off in full each month that may not be the balance being reported to the bureaus.  By monitoring your credit report you can determine on each credit card what number is being reported as your balance.  For example, if you have a credit card with a $10,000 limit and you charge $8,000 to the card then pay the complete balance in full, the credit card company may report your balance as $8,000.  This would show that you are using 80% of your available balance.

6.       Use less of your available credit for better scores.  Keeping your credit card balances below 30% is good for your credit score.  But getting your balance below 10% of your available credit will help you even more.  Using several cards is better than using one card for everything.  Additionally, make payments on your credit cards prior to their statement date.  Because this will lower your balance that is being reported to the credit bureaus.  You can also set up a automatic payment just before the due date to avoid any late fees.


These are just a few suggestions to help you improve your credit score. Having a good score is very important today with the current economy. Getting some help to correct your credit report can help you get on track more quickly. Don’t be afraid to hire someone to assist you in getting your credit report accurate. We can all have good credit if we want and work hard to do things properly.

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