This year, FICO is rolling out a major overhaul to its credit score criteria. No matter the the method used to figure your credit score, however, there are 4 tried and true tips that can help you improve your credit score:
- Make on time payments. This is of all your bills — not just your credit cards. Pay on time, and do so with the full amount required by your bill.
- Lower your debt. Pay down your debt so that you have more debt available than what you are using. A good rule of thumb is to try to only have 50% of your available debt used. Of course, it’s best to have no debt, but the lower your debt, the higher your credit score.
- Avoid applying for new credit. Hold off on the credit card applications and other loans. Realize, also, that cell phone providers and satellite/cable providers will do a “hard” check on your credit. This inquiry can ding your score a bit.
- Try to use your credit regularly. To avoid having your credit card account closed (and lowering your available credit and messing up your credit used portion), use a credit card regularly. Make one or two purchases each month, and then pay off the balance.
You can have a good credit score, no matter the formula used, if you follow the rules of responsible, disciplined and wise use of credit.
January 23, 2009 at 4:38 am
I agree these are all great methods for boosting your credit score. A mush quicker method people often forget about is checking their credit report for errors. Then disputing these errors to get a quick result
January 23, 2009 at 4:04 pm
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January 23, 2009 at 4:12 pm
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January 23, 2009 at 6:10 pm
Thanks for the additional tip, Kyle! It is true that you should check your report for errors, and dispute those that represent inaccuracies. Wrong information can be damaging to your score.
January 30, 2009 at 1:09 am
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