How Do I Improve My Credit Score?

Your credit score is very important. It follows you everywhere. The higher the better. One of the most common groups that look at your credit score are lenders. They want to know if you will be able to pay them back and how much you can afford to pay back each month. Some employers will even check your credit score.

Credit Cards

Your credit score is a calculation that basically lets people know how well you are able to pay your debts. It is made up of several things like payment history, debt level, and length of credit history. Your payment history is probably the most important part of your credit score. Make sure that you send in your payments so they arrive on time. Thus the better your history of paying the better your credit rating. Keeping a low debt level is also very important. Keys to a low debt level are not running your credit cards to there maximum limit and don’t take out to many loans. The longer you have good history with accounts the better it looks for your credit score. This is why it is good to keep some accounts open even if you do not use them very often. This works good with a department store credit card.

So now that you know what your credit score is and how it effects you, it is time to learn how to repair a damaged credit score. Do not get over stressed if you have screwed up your credit rating. In this current economic situation many people have very poor credit. The first thing that you will want to do is get your spending in order by making a budget. You can find out where you are wasting money and help cut that spending out. Try to stop using your credit cards and pay that debt down. I try and use a rule that if I can not pay cash for something then I will not buy it. This helps when trying to stop using your credit card. Most of the time you will not buy something if you see the actual money leave your hand. If it goes on a credit card you have the out of sight, out of mind syndrome. The faster you can lower your credit cards to 30% or less from your maximum level the better for your score. A typical mistake that people will make is asking a credit card company to lower your card limit, if anything ask them to raise it a little. Another thing that you can do is look at your current credit score and see if there may be some mistakes on it or some things that you can get taken off. If you have a really good history with a credit card but were late once or twice it may help to call the company and ask them to remove those late charges from your history.