| "How To Raise My Credit Score - 4 Financial Actions | | | | 4 Financial Actions To Take |
| to Avoid" explains how some specific financial | | | | According to FICO, the following financial actions could |
| decisions we make can either lower or raise our credit | | | | help you boost your credit score and help you keep |
| score. Moreover, the higher your score is, the more | | | | your finances under control. |
| points you can lose by, for example, paying a bill late. | | | | 1) Keep Your Debt-To-Credit Ratio Low |
| We all know how important credit is in our everyday | | | | Creditors would rather do business with consumers |
| lives, but what's even more important is to learn how | | | | with a debt-to-credit ratio below 30%. To them, this |
| to guard it and make every possible effort to boost it | | | | portrays a responsible financial consumer since, instead |
| and make sure it stays up. | | | | of borrowing all the money he can, he chooses to use |
| 4 Financial Actions To Avoid | | | | only a small portion of it. If you're close to going over |
| An article in MSN Money by Liz Pulliam Weston shows | | | | your available line of credit, don't worry. Just take |
| how the higher your score is, the more points you can | | | | measures to lower it. Keep in mind that as long as you |
| lose for any negative financial action you take, such as | | | | fix a financial mistake you make, as the months go by, |
| maxing out your credit card. For example, while | | | | your score will eventually improve. |
| someone with a score of 680 could lose up to 150 | | | | 2) If You Go Over Your Limit, Pay It Off ASAP |
| points by declaring bankruptcy, someone with a score | | | | Yes, going over your limit will lower your score, but |
| of 780 could lose up to 240! | | | | paying your bill and lowering your debt-to-credit ratio |
| Two different credit scores were chosen to figure out | | | | will help you boost it. So no matter how badly you're |
| how much each financial action you take affects your | | | | managing your credit cards, there's almost always |
| credit: a score of 780 and a score of 680.The results | | | | hope to do a better job and help your score bounce |
| shown correspond to each credit score previously | | | | back! If you can afford to pay a chunk of your credit |
| mentioned. | | | | card bill and lower your debt-to-credit ratio, do it. If not, |
| 1) Maxing Out Your Credit Card: -45 / -30 | | | | at least try not to go over your available line of credit. |
| Going over your available line of credit can lower your | | | | 3) Pay Your Bills On Time |
| score as much as 45 points if you have a score of | | | | If you're making your monthly payments on time and |
| 780. If your score is around 680, maxing out your | | | | your debt is diversified (credit cards, mortgage |
| credit card could cost you up to 30 points. | | | | payments, car loans), your credit score will most likely |
| 2) Making A Late Payment: -110/ -80 | | | | improve. Try to keep up the hard work and stay on |
| If you're a month late on your payment, it can lower | | | | top of your finances. |
| your score a lot, especially if it's high. While being late | | | | 4) Make Steady Payments For Several Months In A |
| on a payment can drop your score of 680 up to 80 | | | | Row |
| points, it could actually lower a credit score of 780 up | | | | If you fall behind on a payment, don't despair. Just try |
| to 110 points! | | | | to pay it ASAP and not to miss it again. After several |
| 3) Foreclosure: -160 / -105 | | | | months of making your payments on time, such as |
| Foreclosure could not only cost you your home, but it | | | | after a year, your credit score will tend to go up. Also, |
| could also hurt your credit score. Thus, you should do | | | | try not to open too many new accounts and keep |
| everything you can to prevent foreclosure. | | | | projecting an image of financial responsibility. |
| 4) Declaring Bankruptcy: -240 / -150 | | | | There's Always Room For Improvement |
| As we all know, bankruptcy is an abrupt financial | | | | Hopefully "How To Raise My Credit Score - 4 |
| option to get a "fresh start" and eliminate your debt. | | | | Financial Actions to Avoid" has helped you realize how |
| Nonetheless, due to the new bankruptcy law, filing has | | | | badly some financial actions you take hurt your credit |
| become more expensive and complex. For instance, | | | | score. Once again, life can be pretty tough at times, |
| fewer consumers will be able to file under Chapter 7 | | | | and sometimes an emergency occurs and we may |
| and more will have to file under Chapter 13 and, as a | | | | need to max out a credit card. But if you're managing |
| result, be placed on a repayment plan. Bankruptcy is | | | | your debt pretty well, I advise you to do everything |
| such a major financial move that it can lower a score | | | | you can to follow the previous tips. You'll reap the |
| of 780 up to 240 points, and a score of 680 up to 150 | | | | rewards of using your credit card responsibly. |
| points. | | | | |