HOW TO IMPROVE YOUR CREDIT SCORE
Once you know
your credit score, you can follow these tips to improve your rating:
1. Pay your bills on time.
payments can have a negative impact on your credit score- while the
longer you pay your bills on time, the better your score. For
example, someone with an average credit rating of 707 can raise
their score by as much as 20 points by paying all their bills on
time for one month.
2. Keep balances low on credit
High outstanding debt can affect your credit
score. Maxing out your credit cards could lower your average score
by as much as 70 points.
3. Don't open new credit
cards that you don't need.
New accounts will lower your
average account age, which could actually lower your score by up to
4. Have credit cards - but manage them
In general, having credit cards and
installment loans (and making timely payments) will raise your
credit score. Someone with no credit cards, for example, tends to be
higher risk than someone who has managed credit cards responsibly.
5. Closing an account doesn't make it go away.
A closed account will still show up on your credit report and may be
factored into the score.