How do I improve my credit score?

**Ellery** · 05-26-2009 10:35 AM

Hi everyone, I have been going through my credit scores lately and feel as if it is time to get someone working on it. I really don’t have any particular reasons so as to have low scores but I need someone to work on them to make them better in case of a loan (that I expect to take in a few months) I need. So, can you please suggest me some good agencies that could help me out.

Thanks in advance!

**The Stealthy One** · 05-26-2009 09:26 PM

Here are some quick tips:

1. Try to keep your total revolving debt (credit card) credit used-to-credit available ratio under 35%. In other words, if you have a $1,000 credit card limit, never run it up above $350. If you currently have one or more cards with a total credit used-to-credit available ratio over 35%, pay them down so that they are under this limit.
2. Do not close any revolving credit accounts.
3. Pay all installment loans on time and in full.
4. Do not fully payoff an installment loan within the first two years it has been taken out.
5. Minimize, as much as possible, the amount of "hard" credit checks taken against your record (these occur each time you apply for a new loan or a credit card). You really don't want any more than 3 or 4 hard checks in the last 12 month period.

These tips are by no means exhaustive! Try starting here to find further resources on this topic: Components of Credit Score - Impact of Credit Score

**myfayt** · 05-26-2009 09:42 PM

You can't bring your credit score up by much in a few months. It can take a year to get +20 points if you do everything perfectly.

If you have $0 on your credit cards, your score will improve or around a quarter of your limit. Paying more then the lowest monthly amount really helps.

Don't let cards be inactive or they will close your account and it hurts.

Every time you apply for a credit card or loan your credit drops. Yes if you even fill out an application for credit or a loan, you drop like 2 - 4 points, if approved or denied. Beware

With the economy I've been dropping like crazy and I am doing paying all my bills on time, I haven't missed one for about 16 - 18 months. I had a score of 742, then dropped to 721, and last month it was 704. So don't think you are at fault for anything. What they base it off of is really stupid and incorrect.

Oh and also, if on your report it says that your credit limit is $0 it means the limit wasn't reported, you need to get it reported asap, or else they will keep dropping it thinking you are at or over the limit.

**custronadems** · 05-27-2009 09:00 AM

Having a good credit score is really important and you never know when the low scores would get you into unwanted trouble. Moreover, when going for a loan, these are one of the prerequisites that you have to take care of. Recently, my cousin had taken the services of a credit repair company to get her scores in a better shape. I hope that this would benefit you too.