Smart Ways to Boost Your Credit Score

First impressions are lasting, and there is nothing more important to the eyes of the lender than your credit score to see if you are worthy as a borrower.  The higher the score, the better, in order to take advantage of the most favorable rates on the market.  Your score can affect your loan approval or denial, so whether you have had credit troubles in the past or are looking for ways to give it a boost, there are important behaviors to continue to possess in order to continue to see your credit score rise.  You can now see your credit score included on credit card monthly statements, so each more you can see your score rise or fall.

Every Payment On-Time

Lenders want to see that you repay your debts on time if they are going to continue to lend to you, so it’s important not only to avoid late fees and possible interest rate increases, but if thirty days late, it will be marked on your credit report that could take up to seven years to come off, so one mistake, and it could take the better part of a decade to come off, so make sure that payments are made on or before the due date each month.  A good way to make sure all payments are made is to split between paychecks, so that way you can even out payments made, and leftover cash.

Pay Down Debt

Just as important as payment history is the amount of debt you carry compared to the credit line.  The closer you are to reaching your credit ceiling, the more you will significantly reduce your credit score.  Start paying down debt and you will start to see your score rise each month.  Just keep in mind that reports are typically a month or two behind, so if you have made a large payment recently, it may take a little while to catch up until you see the score boost.

Leave Accounts Open

It’s a huge weight off your shoulders to finally payoff debt, especially if it has taken years to overcome a credit card problem.  The first instinct you may have when you finally have that zero balance would be to close the account so you never have to risk charging it up again, but in fact, it will help your credit score to leave the account open, and if you don’t want to use the card just simply cut it up, that way you will have the available credit and length of the account will continue.

Limit Credit Applications

Every time you fill out an application and credit is pulled, there is an inquiry on your credit report that will stay on there for up to two years.  Since it will remain on there for a while, it’s best to limit your credit applications to only necessary decisions such as a lower interest credit card or mortgage, and avoid submitting to shop around, at which the more applications that you submit it could give the impression that you are looking to go on a shopping spree.

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