7 Ways to Increase Your Credit Score to Above 700
It's incredible how much money you can save by locking into the lowest interest rate. Getting the lowest interest rate when shoping for a mortgage, refinace, home equity loan or even auto loan should be primary in your mind.
Knowing exactly what elements of your credit score organizations like Trans Union, Expirian, and Equifax consider important can help you focus on fixing damaged credit.
Do yourself a favor.Save this 7 step plan - print it out and glance at it every day. Good credit doesn't happen OVERNIGHT - it's truly a process.
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Step 1.Pay off Late Bills First:
Paying off any late debt from an auto loan, credit card or student loan is essential. Being late on these types of credit by 30 days will immediatly lower your credit score.
Step 2. Request a Good faith Adjustment:
A Good Faith Adjustment removes the late payment information from your credit score. Once you bring your account to current status a polite request of a good faith adjustment many times works. Be careful when speaking with creditors and never demand that this happen. If you are polite you will get the results you want.
Step 3. Remove Negative Information once Collections Accounts are Paid :
If you have debts that are in colection DO THIS. Request that as a condition of paying the collection company all reference to negative credit regarding your account will be removed. Collection companies are desperate to receive funds - done tactfully your request should be honored.
Step 4. Don't carry all Your Debt on One Credit Card
If you are carring a large credit card balance, make sure you spread it out over several credit cards. Your goal is to have the widest spread between yoiur balace and the upper limit ogf each card. For example, it's better to have 2 credit cards with balance of $1000 on than one card with $2000.
Your credit score will be sink lower if your credit cards are nearly MAXED out.
** A good strategy to follow is asking your creditors to raise your credit limit if your balance is approaching 50% of the maximum limit.
Step 5. Report Credit Limits:
Unreported credit limits to the major bureaus are logged as "maxed out" whether they really are or not. This could be a costly mistake and one that is easily solved. Contact all creditors and insure they are reporting this information out correctly.
Step 6. Use Cards Open Longest First:
Use major credit cards like VISA and DISCOVER especially if they have been open for a long length of time instead of department store credit cards. Remember, you want to keep your debt-to-limit ratio low on all credit cards and the typical department store credit card has a much lower limit - which increases your debt to limit ratio with each purchase.
Step 7.Hold Off On New Credit Accounts:
Try NOT to open new credit accounts.
The reason for this is simple.
You want the average length of time your accounts have been open to be as long as possible. As soon as you open another account your AVG length of time OPEN for the total of all your accounts has been reduced.
Keep Your Credit Score on Track
Following these guidelines can only help move your credit score higher so the sooner you can adjust to these guidlines the better.