| Raising your credit score does not involve a lot a | | | | Never underestimate the value of making timely |
| work. However, theremust be a willingness on your | | | | payments to creditors. |
| part to use credit responsibly. A lowcredit score | | | | Being habitually late on a credit card payment will |
| makes its more challenging to obtain a credit card or | | | | greatly reduce yourcredit score. Moreover, this bad |
| getprime rates on a home or auto loan. On the other | | | | habit can result in raised interestrates. If possible, mail |
| hand, a high credit scorepresents many finance | | | | payments to creditors several days before thedue |
| options. | | | | date. This ensures payment reaching the creditor on |
| Check Credit Reports for Accuracy | | | | time. If you havea difficult time submitting timely |
| Credit report errors are very common. It's | | | | payments, consider setting upautomatic payments. |
| recommended that allconsumers examine their reports | | | | Decrease Credit Card Balances |
| twice yearly. This way, if any errors ormistakes are | | | | Credit card balances account for approximately 30% |
| reported, you can quickly identify them and fix the | | | | of your total FICOscore. Thus, reducing balances is a |
| problem. | | | | quick way to significantly increaseyour credit score. To |
| For example, some creditors may accidentally report | | | | begin, keep credit card use to a minimum. |
| an account beingpast due or unpaid. Usually, common | | | | Avoidshopping sprees and spending money frivolously. |
| mistakes are easy to correct. | | | | Attempt to keep balancesbelow 25% of the credit limit. |
| However, if you do not start a habit of checking your | | | | Once you have successfully reduced or eliminated |
| report, the problemswill go undetected, and can | | | | credit card balances,avoid accumulating additional debt. |
| potentially lower your credit score. | | | | It may help to payoff balances eachmonth, or establish |
| It helps to obtain a copy of your report from all three | | | | a spending limit. It's tempting to close paid offaccounts. |
| bureaus. Thisprovides an accurate credit standing. Also, | | | | Although these appear to be a smart credit maneuver, |
| it's suggested thatconsumers review their credit | | | | closingaccounts will shorten credit history, which lowers |
| before applying for a home loan or autofinancing. | | | | credit score. |
| Pay Bills on Time | | | | |