| In this article, I'm going to share with you three | | | | counselors and financial advisors recommend that you |
| strategies for improving credit score. They are to use | | | | pay down your highest interest rate card first. But this |
| your credit moderately and in amounts you can afford, | | | | isn't the best advice if your primary goal is to improve |
| paying down maxed cards first, and using dormant | | | | your credit score. |
| accounts. | | | | You see, one factor in determining your credit score is |
| People who are responsible with their credit have | | | | called the credit utilization ratio. If you have $3000 |
| good credit scores. They don't need to "game" the | | | | available on a card and your outstanding balance is |
| system or have special strategies for improving credit | | | | $2950, you have a high credit utilization ratio for that |
| score. Their credit score reflects their positive financial | | | | card. Ideally, your credit utilization ratio will be between |
| behavior. So, the first (and best) way to improve your | | | | 20 and 30 percent of the card's maximum. So, the |
| credit score is to start treating your financial obligations | | | | second of our strategies to improve credit score is to |
| in a mature fashion. | | | | reduce your credit utilization ratio. |
| This doesn't mean that you shouldn't use credit. On the | | | | The final strategy to improve credit score is to use |
| contrary, a strategy for improving credit score is to | | | | dormant cards. Yes, I want you to start charging again! |
| use credit moderately and make your payments on a | | | | Actually, you should use every credit account you |
| regular basis. | | | | have at least once every four months, even if you |
| The second strategy for improving your credit score is | | | | pay it off immediately. |
| to pay down your maxed out cards first. Most debt | | | | So, there are three strategies to improve credit score. |