How to Raise a Mid-Six Credit Score

A mid-six credit score isn't horrible, and you'll likely obtain a loan approval. However, if you're looking for the best rate on auto loans or mortgages, it pays to raise your credit score into the high-six or 700 range. Raising your score involves understanding how credit scoring works and recognizing factors that bring down your score.

Instructions

1

Make purchases using your older credit cards. Creditors may fail to report inactive accounts to the credit bureaus, so your credit record might not reflect that you have been deemed credit-worthy and granted credit. Occasionally use those older cards to keep them active. For example, you could use the cards for smaller purchases such as fuel for your car, and then pay off the balance once you receive the statement.

2

Rely on cash. If you have a spending problem, use cash for everyday and major purchases. If you do not have the cash, postpone the purchase.

3

Destroy unnecessary credit cards. Cut your credit cards in half to help curtail your spending.

4

Open your credit card statements promptly. Don't let mail pile up. Open statements upon arrival and mark the due date on a calender or day planner.

5

Pay your bills online. Ensure that your payments arrive on time by signing up for online account management with your creditors. Take advantage of their online payment system.

6

Eliminate your debt. Get into a routine of paying more than your minimum balance. For example, if you have an extra $200 a month, apply this money to your balance. This methods helps reduce your debt and raise your credit score.

7

Reduce the number of credit inquiries. When you apply for credit, the new creditor asks credit reporting companies for a copy of your credit report. This is known as a credit inquiry. Credit inquiries lower your credit rating. Reject those credit card offers you receive in the mail and decline offers to apply for retail charge cards.

8

Obtain a copy of your credit report. Check your own credit report once a year to ensure accuracy. Carefully read each entry, and dispute unknown accounts or reporting errors.