How to Increase or Raise Your Credit Score

If the thought of raising your credit score seems farfetched, think again. Its actually quite easy to do. It is simply a matter of putting certain principles into practice and allowing some time. Consistent effort over time can take you into the credit score stratosphere, even above 800.

Instructions

1

Do not ever pay anything late. Simply plan ahead. If you know you lack the money for a certain bill, borrow it from your parents, friends or get a cash advance on a credit card. Always pay on time. If you start now, your score will rise in just a few months.

2

Have about six or seven credit cards that you rotate using every few months. Pay them in full each month, if you can. Never carry a large balance, never more than 10 percent of all your available credit. Apply online for a higher credit limit from time to time. Applying for new cards will cause your score to go down at first but it will come back higher a few months later. Never cancel a credit card. This will cause your available credit to go down and hurt your score.

3

Pay down your balances. It doesn't matter to the credit reporting agencies if you pay your credit card bill in full or carry a balance. The agencies calculate the average balance owed each month in relation to the total amount of credit you have. The lower the percentage, the higher your score.

4

Get a car loan. After a few months, get another loan at a different place and pay off the first loan. Do this over and over. Paying off a loan will cause your score to increase. The financial institute does not know or care that you are paying off one loan with another. There are usually no origination fees or prepayment penalties with car loans so this will not cost you a thing. If you have more than one car loan, pay all but one off in full.

5

Go to AnnualCreditReport.com and get your credit report for all three credit reporting agencies. You can do this for free one time per year. You will have to pay extra to get your actual score but you should do it to know where you stand.

6

Call the collection company and try to make a deal, if you have items in collections. The company will always take less to settle, usually 10 to 50 percent. Get the offer in writing before you pay anything. Make sure they will agree to report the item as paid to the credit reporting agencies. If it's still on your report after a month, you will have to dispute it.

7

Get your credit score every six months to see how things are working. Keep an eye out for negatives. You would be surprised how many mistakes can get on your credit report.

8

Refrain from having your credit checked too often. Every time someone checks your credit, except you, your score drops a bit. Thus, when browsing cars or boats, do not give the dealer any personal credit information just to see if you can get a loan.