Your credit score is a 3-digit number between 300 and 850, generated by a mathematical algorithm (a mostly secret formula) based on information in your credit report, compared to information on tens of millions of other people. It is said that the resulting number is a very precise prediction of how much you are likely to pay your bills.
If it seems boring and unimportant, you could not be wrong anymore. Credit scores are widely used these days. If you rent an apartment, take braces, buy cell phone service, apply for a job or call for related services, chances are good that your report and score will be pulled.
If you have an existing credit card, it is likely that the issuer will look at your credit score to decide whether to reduce the credit limit or charge you a higher interest rate. The higher the number, the better we look at creditors. People with the highest scores get the lowest interest rates. And, we hear, they are getting the job.
Know your score
We know that we can get our credit reports for free at AnnualCreditReport.com. Now we can get our credit scores FREE, mashed potato. Check your credit scores anytime and anywhere and never pay on CreditKarma.com. You will need to create a simple password-protected account. No credit card is required
Here are the ways to improve our credit scores:
Pay your bills on time
Making credit payments on time is one of the biggest factors contributing to your credit scores. Unpaid payments have a strong negative impact on your credit score. If you've lost your payments, it will be updated and stay up-to-date. The longer you pay your bills, the better your credit score will be. Be aware, however, that paying a collection account or bringing a checking account will not remove it from your credit report.
Keep the "revolving credit" balances low
The use of over 30 percent of credit on credit cards reduces your credit score. This applies to individual accounts and when all the available credits are added up and compared to what is used on a given day during the billing cycle. This is easier said than done, but reducing the amount you owe will be a much more satisfying result than improving your credit score. The first thing you need to do is stop using your credit cards.
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Pay the debt rather than move it
The most effective way to improve your credit score is to pay the revolving credit. Bring balances to $ 0 will send the ascending score.
Do not close unused credit cards
Closing accounts may seem like a great short-term strategy to increase your score, but it's not. This will fill the gap between outstanding debt (the amount of credit you are using) and the total amount available. Instead, use a clear strategy to close the accounts, but only because it will not affect the gap between what you need and the amount of credit available.
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Do not open new accounts
More credit may seem wise in order to increase your available credit report, but it will be considered negative for your score. New or "young" accounts are not useful for the credit score because they dilute the average age of the account. Unless it's a terrible emergency, do not open new credit accounts.
Work on longevity
Be sure to keep your accounts older. A large amount of weight is given to longevity, so the oldest account you have is the most valuable.
As with many things in life, time is the best "healer". Do the right thing by managing your finances responsibly and your credit score will take care of itself.
If you have difficulty making ends meet, contact your creditors or consult with a legitimate credit counselor. This will not rebuild your credit score immediately, but if you can start managing your credit and pay on time, your score should increase over time. And seeking assistance from a credit counseling service will not damage your credit scores. But be careful. There are many timids disguised as negotiators, settlers and credit counselors.
You can find a legitimate and certified credit counselor at NFCC.org. The National Federation for Credit Counselors is the first and largest national non-profit organization dedicated to improving people's financial well-being.
Go to NFCC.org for immediate online assistance or call 800 338-2227 right now to be connected to a consultant near you. NFCC offers credit / debit advice, bankruptcy advice, housing advice, reverse mortgage advice, student loan debt advice and debt management plans.
NFCC is legitimate. In fact, NFCC is the only Organization of credit advice that I recommend and support. They have been around for many years and have earned the highest reputation. NFCC is a wonderful organization you can trust that has come to the rescue of thousands of my readers over the years. They are ready to help you too!
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