To have an excellent credit score requires consistent hard work. Many factors matter. Always pay on time, keep the credit usage low, keep your accounts open even though you don’t use the credit cards, and etc.
One way to improve your credit score is to review all of your credit cards that carry balances. Pick the ones with low balances and pay them off first.
Another smart move is to regularly keep up with your credit reports. Your credit score will improve over time if you maintain the correct actions consistently month after month. Credit scores bear years of past behavior, not merely your present actions. If you have a low score now, do not despair. Keep making on time payments, and try not add to your balances. Over time, you’ll see the scores improving. You are also entitled to a free credit report every year. In addition, the lender has to show you credit score it uses; therefore if you are denied credit, you have the legal rights to obtain the credit reports for free.
Leave the old debts and good accounts on your credit report as long as possible. It’s also an ideal reason not to close old accounts where you’ve had a solid repayment record. You’d better be laser focused on your credit score when you know you’ll soon need credit. In the interim, pay your bills and use credit responsibly. Your score will reflect these good spending behaviors.
Credit reports will also provide you with specific ways to improve your credit score with codes or factors that have kept your score from being higher. For example, the insurance company will tell you which credit bureau it uses to pull your credit, and why it can or cannot offer the lowest possible rate to you.
Negative items are bad for your credit score. A few of them will disappear from your report after seven years such as bankruptcy or litigation. Avoid these negative actions at all cost even if you have a hard time to pay the bills. Pay the minimum or call the creditors to renegotiate the repayment terms when you are unable to meet the current repayment obligations.
Nearly any time you apply for credit, it can cause a small dip in your credit score that lasts at least for a few months. Try not to apply for credit cards frequently simply because of the luring promotional offers.