Monday, July 19, 2010

Tips to boost your credit score

Having just gotten my credit score over at Free Credit Report, I went looking for some articles on ways that you can boost your credit score. 

It's been my experience, so far, that your credit score is determined more by art than science.  I am no expert, but fortunately, I know how to Google, and found some interesting tips on ways that you can boost your credit score.  Some of these seem like common sense (the number one piece of advice - pay your bills on-time), but some were relatively interesting information.  Did you know, for instance, that canceling a credit card can actually hurt your credit score?

Anyway, here are the tips, courtesy of articles from MSN Money and Bankrate.com.  Do you have any other tips or information that you'd like to share?

1)  Pay down your credit cards.
2)  Use your credit cards lightly and keep the balances down.  This one is interesting - what is typically reported to credit bureaus is your last statement.  So, does that imply that it is better to pay your credit cards before your statement is sent?
3)  Check your limits.
4)  Use your oldest credit card on occasion.  This will make your credit history look older, which improves your score.
5)  Build goodwill with your lenders and ask them to erase one late payment.
6)  Dispute old negatives.
7)  Blitz significant errors. 
8)  Most lenders have lending rules that are "carved-in-stone."  A difference between 698 and 700 could cost you big time, but 760-800 will get you the same terms.
9)  Transfer away from cards that are close to their limit or spread out charges on multiple cards.

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