7 tips on improving your credit score

In todays hard economic times it is getting moreyour credit limits than this can have a negative affect
difficult to be approved for any type of credit. Byon your credit score. You should always try to
following these simple suggestions you can help tomaintain balances of 30% or below on all of your lines
increase your credit score making you more likely toof credit.
be approved the next time you apply for credit.3.       Add yourself as an authorized signer on
When trying to increase your credit score consumersanother person’s credit card. If you know
must realize that there is no legitimate way to boostsomeone who would be willing to add you as a signer
your credit score overnight. It takes time and patienceon their account than most credit card companies will
to build a solid credit history which is the best way ofalso start reporting that account under your credit as
obtaining a high credit score.well, helping to improve your credit rating.
There has been an increase in the number of4.       Don’t close any accounts that are
companies that claim they can do just that, boost yourcurrently open. You may have heard this before and it
credit score by around 100 points or more in a veryis certainly true that your credit score can drop by
short period of time. Consumers must remain veryclosing accounts. The longer an account has been
cautious when dealing with such companies as manyopen the better it is for your credit.
of the tactics they use can backfire, causing your5.       Open a secured credit card. This works
score to decrease and damage your credit rating.best for someone who is just starting to build up their
But there is still hope for the many consumers outcredit. There are many lenders that offer these so
there who have been hard hit by the decliningmake sure to shop around. All secured credit cards will
economy. With foreclosures and credit card defaultshave some sort of fee associated with it but some
still on the rise, lenders all around have tightened upare much lower than others.
their underwriting guidelines making it much harder to6.       Contact your creditors. If you are
be approved for a loan or line of credit. But there arecurrently behind or having trouble making all of your
still many ways for you to start building a higher creditminimum payments than it wouldn’t hurt to try
score, making it more likely for you to be approved theand negotiate with your creditors for a lower interest
next time you apply for credit.rate or see if they can lower your monthly payments
1.       Make payment arrangements to getmaking it easier to pay your bills on time.
current with any delinquent accounts you may have.7.       Monitor your credit reports. In many
Being behind on your payments can make it nearlycases you may find inaccurate information being
impossible to be approved for credit even if you havereported on your credit reports that can damage your
a high credit score.credit. A simple dispute letter to the credit bureaus can
2.       Pay down the balances on your creditcorrect any false information and get you back on
cards. If you carry an average of 50% or more oftrack to building your credit.