Improving Your Credit Score

So how can you improve your credit score? Here are some things you can do to get that FICO score to creep back up to a good score:

1. Order a copy of your credit report. Check it for any errors and contact the credit agency that is reporting an error.

2. Always pay your bills on time. Not paying your bills on time is the #1 mistake that people make that affects their credit score. Always, always, always pay your bills on time…even if it is just the minimum payment.

3. If your credit score isn’t the greatest, open a few new accounts, use them responsibly, and pay them off on time. Responsibly credit management will give your FICO score a big boost!

4. Keep your balances low in relation to your available credit. Keeping your balance at or below 25% of your available credit will improve your score.

5. Pay down your credit cards rather than just moving them around to lower interest cards and keeping the balances. Your credit ratios are affected by the balance so it is important to pay that balance down!

6. Don’t get discouraged! Negative items affect your credit score more quickly than positive items. A late payment can affect your score negatively in a matter of months, but paying bills on time can take 6-12 months to affect the score positively.

It may take up to a year of work to clean up your credit score, but it’s worth it! Just keep plugging away at the positive steps and you’ll see your credit score turn around and open the doors to better credit opportunities before you know it!

Take care,

Chris Hyde
Mortgage Consultant