1. Pay Your Past Due Accounts

Make sure all of your accounts are current. Paying the amount that shows as being past due on the credit report can increase your credit score. Your results depend on your overall credit profile.

2. Try to “Get Rid” of Your Late Payments

Contact all creditors that have reported late payments on your credit report and request an adjustment that actually removes the record of late payments reported on your account.

3. Request to Have Your Credit Limits Increased

Having low credit limits on a credit card can actually hurt your credit score. Having low available credit limits affects your debt to available credit ratio. The lower the percentage of debt to available credit the better, it shows you are able to handle having credit available without running it up to the max.

4. Become an “Authorized User”

If you have a short & limited credit history, you can ask someone to add you to their credit card account as a joint account holder or an authorized user. It is important to remember that being an authorized user is helpful for your credit score only if

(1) the person is carrying debt below 10% of the credit limit on that card &

(2) has had good payment history on the card for seven years or longer

5. Do NOT Close Your Old Credit Cards, Keep Them ACTIVE

15% of your credit score is determined by the age of the credit file. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit…as well as increase your “debt to available credit ratio” as discussed in point 3. Use the old card at least every six months to avoid the account rating to change to “inactive”. An inactive account is ignored by FICO, so you will not get the benefit of the positive payment history & low balance that card may have had in the past.


Category: Credit, Tips

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