How to Increase Your Credit Score and Improve Your Life

Buying a nicer home and financing a reliable car requires a good credit score. According to Experian.com, a good credit score is 700 or higher. People in this category tend to acquire easy loan approvals and the best interest rates on financing. But what if you have a lower score? Credit scores aren't written in permanent ink, and there are practical ways to improve your score and your life.

Instructions

1

Keep small balances on revolving accounts. Credit card usage impacts credit scoring. Pay down your balances and control spending to avoid going over your limit. Balances should stay below 30 percent of credit limit.

2

Reverse bad payment habits. Delinquencies reduce your credit score, wherein it becomes harder to get loans. Always pay credit cards and loans on time to keep a good rating. Call-in payments or use online systems.

3

Limit new accounts. Your credit score drops whenever someone reviews your credit file. Stop applying for credit cards and loans unnecessarily. This includes disregarding pre-approved offers that arrive in the mail and in-store invitations for charge accounts.

4

Work with your lenders. Make creditors and lenders aware of hardships in order to protect your credit score. Do not miss payments or send in late payments. Inquire about skip payment options or a reduced monthly payment.

5

Check credit file for mistakes. A low credit score may result from creditor mistakes. Get a free credit report from Annual Credit Report each year. Spend time reviewing the report and checking it for accuracy.