Maintaining a high credit score (700 or higher) indicates a measure of responsibility. It takes great strength to resist the urge to use credit cards. With credit, it's possible to fulfill many desires. Uncontrolled spending can lower your credit rating and if you are unable to pay your minimum each month, you'll likely receive negative remarks on your credit report. But fortunately, there are ways to raise a low score.
Avoid Delinquencies
Improving your payment habits can have a tremendous impact on your credit scoring. According to MyFico.com, on-time payments account for 35 percent of your credit score. Keeping this fact in mind, paying your credit cards and other loans on time can boost a low score and help you maintain a good rating. There are ways to ensure your payments reach your creditors before the due date. Consider mailing payments at least a week before the due date, or pay your bills online for immediate credit.
Pay Down Debt
Your amount of debt impacts credit scoring, and building a score quickly can be as simple as eliminating debts. Paying only the minimum on credit cards is easy and rarely impacts personal finances. However, making small payments each month will not pay off a large debt. You need to increase payments or drop a lump sum on your debt each month.
Check Your Report
Some consumers will experience a drop in their credit score due to creditor mistakes. Credit card companies and other finance companies regularly submit information to the credit bureaus. And occasionally, they inadvertently report wrong information. While it's possible to clear errors and get these remarks removed from your credit report, unknowingly having this information on your report can bring down your credit score. This can pose a problem when applying for a home or auto loan.
Limit Credit Applications
Having a good credit score makes you a good candidate for loans and credit cards, and department stores will tempt you with in-store charge accounts. While applying for preapproved credit card offers and charge accounts may seem harmless, each credit inquiry or application takes points from your credit score. Bring up your credit score and maintain a high rating by declining offers, and only applying for credit when absolutely necessary.
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