It is important to understand that raising your credit score takes time and no quick fixes are available.
The best advice is that one must manage their credit obligations and responsibilities regularly over time.
A significant improvement in your score can help you to obtain a low rate mortgage which will save thousands of dollars over time when compared to a high rate mortgage.
1.
Tips on Payment History: oPaying bills on time is the best way to stay out of debt.
Delayed payments and collections negatively affect your credit score.
oIn case of any missed payments make sure to maintain your current payments properly.
The more you pay your bills on time the more likely it is that your credit score will increase.
oRemember that paying off a collection amount accumulated over time due to missed payments stays on your report for nearly 7 years.
It is not removed from the credit report.
oIf you find it difficult to meet your expenses and payments you must tale advice from a legal credit counselor.
2.
Tips on Amount Owed: oOne must keep the balances on the credit card at a lower rate.
High amounts of outstanding payments can negatively affect your credit rating.
oMake a habit of paying off debts rather than pushing it or delaying it.
oNever close unused credit cards which you do not need.
oDo not open an end number of new credit cards.
This can backfire over time and affect your credit score.
3.
Tips on Length of Credit History: oFor people who have been adjusting the credits for shorter time it is advised that one should not open a lot of new accounts rapidly.
This will lower the average age of you accounts, which can have a negative impact on your credit.
4.
Tips on Fresh Credits: oOne must compare rates within the period of time for a given loan.
oOne must also re-establish the credit history if problems occur.
oIt is alright to request and check your own credit report.
This does not affect your credit score in anyway.