 Photo Credit: Britt & the Benjamins Having a high credit score can mean the difference of thousands of dollars of saved interest expense compared to others with a lower score. For example, if you improve credit score results from the credit bureaus, just a few points that increase your credit score can make huge difference in the interest rate you will pay for a home purchase. It pays to increase your credit score! The most commonly used credit scores available to lenders are FICO scores, which is a scoring method created by Fair, Isaac & Co...FICO! These scores are provided to lenders by the three major credit bureaus: Equifax, Experian, and TransUnion. Now, with the playing field laid out, let's work to boost your credit score! Some methods that boost your credit score take time, months or years, and others areas to improve credit score can be made with a phone call right now! That said, here are the 7 tips to raise your credit score! 1. On-time payment history on credit and retail store cards, loans and mortgages. 2. Amount that you owe. Credit agencies look at how many accounts have balances and the proportion of that balance to the credit line. 3. How long is your credit history? The longer the better. 4. New credit accounts. Applying for a bunch of credit cards all at once can hurt your score. 5. Different credit types, such as mortgages, retail loans, credit cards and installment loans. 6. How many late payments do you have? 7. Report for errors and contact the credit reporting agencies to fix any errors on your credit report. If you take action and follow these tips, you will be able to give your credit score an immediate boost and gradually increase it even more as time passes. The major keys are to pay your bills on time and reduce your debt amounts when compared to your credit limit. This has a two-fold benefit of improving your credit score and reducing your debt.
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