Tips on How to Improve Your Credit Scores

Tips on How to Improve Your Credit Scores

Here are a few tips to improve your credit scores before you start looking for that new house:

Pay your bills on time, and pay at least the minimum amount due.
Contact your creditors immediately if you miss a payment, and work out a payment plan before they report you to the credit bureaus.
Do not close credit card accounts in good standing. These accounts show you have a record of managing your debt responsibly. Someone with no history of credit is seen as a higher risk.
Avoid charging to the limit on your credit cards. It is better to spread out your charges on two or more cards than to max out one card.
Ask creditors to raise your credit limit so you do not appear over-extended.
Do not open new accounts, which imply you’re acquiring new debt. This will lower your score.
Aim for a rich mix of credit; for example, revolving credit (credit cards, department store credit cards) and installment debt (car loans, student loans).
Correct errors on your credit report.
If you suspect your creditor should be reporting positive information to the bureaus but isn’t, contact the creditor or the bureaus directly to set the record straight.

Do not assume that a high salary guarantees a good credit score. Find out the key factors dragging down your score so you can fix them. Once you are comfortable with where you stand in regards to your credit report the next phase will be to fill out the loan application.

For more information on this subject go to www.MakeNoMistakes.com