| Over 30 million Americans have less-than-perfect | | | | have to pay your bills on time. |
| credit, but it is really quite simple to increase your credit | | | | You can also improve you score, and your money |
| score. But there is no quick fix. Repairing a damaged | | | | situation, by paying off some of your debt. The less |
| credit score takes time. There are plenty of easy | | | | debt you have, the higher your credit score will be. You |
| ways to raise that score, but they all take time. | | | | need to let the zero balance on a card sit for over a |
| You need to know what your credit rating is. This will | | | | month. The fact that you might pay off the entire |
| be a number between 300 and 850 that reflects your | | | | balance each month is usually not reflected in the |
| creditworthiness. There are many factors that go into | | | | balance reported to the credit bureau. The amount you |
| this score, including your payment history and debt to | | | | charge each month will be seen as a balance on your |
| available credit ratios. | | | | report, therefore, raising your credit score. |
| Start with your current credit reports. If everything is | | | | There is a lot of debate about closing old credit card |
| positive on them, you will most likely have a fairly | | | | accounts. Many financial experts will tell you to do so. |
| decent credit score. You can receive a free credit | | | | Some say that open accounts are an invitation for |
| score from each of the three credit reporting agencies | | | | identity theft. Other advisers say that closing old |
| every year. Go to for more information on how you | | | | accounts lowers the amount of credit you have |
| can get your credit report for free. | | | | available. This makes the outstanding balances you |
| Your credit report will not come with a credit score, | | | | have with other accounts much closer to the |
| you must purchase this separately. It will usually cost | | | | maximum credit amount you have. This can lower |
| you around $5 or $6 for each report. Each agency | | | | your credit score. Plus, if you close really old accounts, |
| can have different information on their report. And | | | | you are shortening your credit history, which negatively |
| each uses a different scoring method for your credit | | | | affects your score. |
| score. Don't be alarmed if you see as much as a 50 | | | | While often credit counseling is reported to the credit |
| to 100 point difference between scores. This is normal. | | | | bureaus, it does not factor into your credit score. Plus, |
| Know that you know your score, you can work on | | | | once you complete the program, most agencies will |
| improving it. The most important thing you can do to | | | | remove any references to credit counseling from your |
| increase your credit score is paying your bills on time. | | | | report. But be aware that any credit counseling firms |
| By paying your bils on time, you can raise your credit | | | | that work in debt settlement will negatively impact your |
| score significantly over the next several years. You | | | | credit score. |
| must make these payment on time to raise your | | | | Anytime you pay less than what you owe, you will |
| score. It is the easiest and simplest way. | | | | see this impact on your score. You should also try to |
| Missing even two bill payments can have a terrible | | | | avoid bankruptcy. This will move your credit score into |
| effect on your credit score. Your recent history is far | | | | the very bad level, meaning that future reasonable |
| more important to lenders than your history five years | | | | interest rates will almost be impossible. You will still be |
| ago. Even if you have pristine credit, missing a few | | | | able to get credit, but you will pay dearly for it. The |
| payments can drive your score drastically down. | | | | interest rates will be absolutely outrageous. |
| Some credit card companies are using missed | | | | There are no quick fixes, but the fixes aren't difficult. |
| payments on your credit report as a reason to | | | | Pay on time and reduce your debt. You can increase |
| immediately raise your credit card interest rate. You | | | | your credit score in two simple steps. Good luck. |