How to Improve My Credit Status

Your credit status affects your chances of getting loans, opening new credit lines and applying for anything related to a credit score. A poor credit status leads to a person being deemed as a risky borrower, which decreases their chances of being approved for anything credit related. However, even with poor credit, you can improve your credit status by changing a few credit-related habits. Improving your credit status takes time and patience, but it is certainly possible.

Instructions

1

Pay credit card bills on time. Making late payments on credit card bills negatively affects your credit score.

2

Pay down your credit card balances. Each credit card, as well as your total credit line, should be below 25 percent usage to increase your credit score. Charge only $750 or below on a $3,000 limit card, for example. Pay down all credit cards that carry balances above the 25 percent mark and your credit score will increase.

3

Get rid of credit cards whose issuers don't report your credit limit. Issuers who don't report card limits normally use your highest balance as your limit. This makes it appear that your card is maxed out, which adversely affects your credit rating. Call your credit card issuer to ensure that they report your credit limit.

4

Open new credit accounts slowly. New credit accounts lower the average length of your credit history, which affects your credit score. If possible, avoid opening new credit accounts and just hang onto your old ones.

5

Dispute any incorrect charges. Credit card companies make mistakes, and if you see an incorrect debt on your credit card bill, then contact the credit card company and dispute the charge. Write a simple letter asking for verification of the debt, and credit card companies will double check to make sure no mistakes were made.

6

Transfer balances from near maxed out cards to other cards. This allows for a more balanced credit usage, which raises your credit rating. Most cards allow the transfer of balances.