Tuesday, October 28, 2008
Increase Your Credit Score!
To improve your credit score it is important that you remove any inaccuracies on your credit report, make your payments on time and lower your outstanding debt balances. There are many other ways that you are able to increase your credit score. Making all of your monthly bill payments on time is the best way. Another good way is by keeping the balance of total available revolving debt limited to approx. 30% of your total credit limit.
To increase your credit score you can also limit the number of credit inquiries that you have against you by limiting the amount of new credit applications you complete for example stop applying for the credit cards that offer a free gift giveaway when you apply. Don't close old accounts because the length of your credit history plays an important role in credit scoring. A long established credit history is much better than a short patchy credit history.
Then make sure you avoid taking on consumer installment credit accounts. These are the type of accounts offered by retail furniture, appliance, etc. type stores. Many of them offer "90 days same as cash" or "no interest for one year" to sound attractive. But they are not just worth. Moreover, having these type of accounts will have a negative effect on your credit score. Never, let past due accounts get turned over to collection. It will impact your credit score negatively when the collection reports on your credit report.
Take out a secured credit card is just another good way to increase your Credit Score. By doing this, the credit card will show the creditors that you have more available credit to you. Always remember that the longer the card is open, the better that it reflects on your credit as well. Also, since it is already secured with your money, you will not be able to get yourself into any sort of spending trouble or bad habits.
30, 60, and 90 day late payments hurt your score more than anything else. A 30 day late payment occurs as soon as the payment is late, not 30 days after it is late. As we know the creditors will not always report late payments immediately, if you make the payment soon after the due date. However, you can't depend on this. The best thing you can do is make all of your payments early, just to be sure they are paid on time.
To determine how to most effectively increase your FICO credit score, certain mortgage companies may utilize computer software which can simulate what certain changes to your credit report, for example paying down balances or closing certain accounts, may have one your credit score.
Always be in touch with a mortgage broker, they can actually help you to improve your credit. It is also important to pay your bills on time and decrease your credit balances. You can increase your credit score by disputing errors found in your report. You will need to dispute errors with each of the three credit bureaus separately. If you can provide proof of errors in your credit report while applying for a mortgage ask your loan officer to do a rapid re score. This can help raise your score in as little as 3 days.
Lastly I would advice you that improve your credit score by reviewing your credit report with a mortgage professional, and follow their instructions. Check out this excellent video before you log out !