How to Help My Credit Rating

A credit score in the high 600s and 700s is considered good by most lenders' standards. Having a good credit rating opens the door to various finance options. You'll qualify for a mortgage loan and vehicle loan, and you'll likely obtain a low finance rate. The rate on a loan determines your monthly payment, and if you're looking to keep your payments within budget, now's the time to review your score and take steps to raise your rating. With effort, you can realistically increase your score by 100 points or more.

Instructions

1

Be aware of due dates. Each late payment drops your credit score. To increase your score by at least 100 points, consistently pay your bills on time. There are various ways to avoid late arrivals. Pay credit card statements online, or send checks several days before the due date.

2

Stay within the limit. Going over your credit limit on credit cards results in higher fees and a negative credit rating. Use credit cards sparingly, and track your spending to avoid excessive debt.

3

Decrease outstanding debt. Don't get into a habit of using credit cards for every purchase--unless you're in a position to pay off the card each month. Reserve plastic for emergencies. Keep a low balance to raise your rating.

4

Work to get negative items deleted from your credit report. Regularly monitor your credit report by ordering a copy from Annual Credit Reports at least once a year. Erroneous entries can damage your score. Dispute mistakes by contacting the credit bureaus.

5

Stop opening new credit cards. Excessive credit inquiries lower your credit score. If looking to increase your score, only apply for credit when absolutely necessary. Shred pre-approved credit card offers, and refuse invitations to apply for in-store retail accounts.