How to Raise a Low Credit Score

A low credit score can have a devastating effect when it comes to getting those important loans you need, such as home loans, college tuition and vehicle purchases. A short credit history, late payments and large revolving credit balances will keep your credit score low until you do something about them. Improve a low credit score by injecting some common sense credit behaviors into your financial get-well plan.

Instructions

1

Work on a strategy for paying your bills on time. Keep a spreadsheet of your bills and when they are due each month. Set up automatic payments from your electronic bank account to ensure you are current.

2

Pay down all revolving credit balancesbelow 30 percent of your total credit limitand work to keep them there. Constantly flirting with revolving credit limits tells a lender you could easily get in over your head.

3

Avoid closing old credit accounts so your lender can see that you have a long credit history.

4

Do not open new credit accounts all at once, as this shortens your credit history. Sometimes this occurs when people chase lower credit rates, transferring their old balances to new credit cards.

5

Pay on a variety of credit types rather than only revolving credit. Lenders like to see this varietycar loans, revolving credit and mortgageso that they know you can handle any type of credit challenge.