10 Hints for Pumping Up Your Credit Score

by MarketProSecure

There are few things you can do to repair your credit. Enjoy the following list of prescriptive options:

• 1. Pay your bills on time. You can make this easier by using automatic payments or have an automatic reminder on your computer. I pay my bills using on-line banking and as a free perk, I am reminded when the phone bill (and all other payments) is due.
  
  
• 2. Pay off small balances right away and whittle at larger balances. Not only does it look good on your credit, you are more likely to get a mortgage or car loan if you need one. Emotionally speaking, you will love to see credit card debt shrink when you review your bill each month.
  
  
• 3. Close account? Maybe. According to Craig Watts, an executive with one of the leading credit scorers: "Closing accounts can never help your score, and often it can hurt." At one time, the accepted truism was, close unwanted accounts. Perhaps, we need to rethink that.
  
  
• 4. Review your record with the major credit bureaus. Mistakes happen and they could happen to your account. If you find an error, correct it. If you find a small balance that is harming your credit – pay it. You can get one free credit report from each bureau once a year.
  
  
• 5. Some financial advisors suggest having at least three open accounts which are paid faithfully each month. Again, technology and automatic payments can help you with this pesky chore.
  
  
• 6. Yes, things happen. However, never be over 30 days late. That is the magic number that sends a negative report winging its way directly to your credit bureau. Very bad news…
  
  
• 7. Beware! There is no easy, pain free way out of debt and into good credit. It is even less likely than the magic bullet that allows us to eat whatever we want and lose weight. Yeah, right… Don't believe the scams.
  
  
• 8. Most of the time, if you cannot afford to pay cash… don't buy it (whatever it is). Keep your credit balances small. Rule of thumb, buy items on credit that last over time (i.e, furniture, television, car).
  
  
• 9. Avoid inquires to the credit bureau about your credit. Seriously consider your options before opening unneeded new accounts (even if you get 20% off on merchandise that day).
  
  
• 10. Talk to your creditors. If you must be late due to unforeseen circumstance call your creditor. Explain your tardy payment and make arrangements until you can pay in a timely manner again.
  
  

Published: July 5, 2008

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