Simple Steps You Can Take To Help Your Credit Score

Good credit is about the same as good health. You have to have good credit to function properly nowadays. If you don't have good credit, people tend to second guess before shaking your hand and welcoming you. It's a very sad truth to the world today. However, there is good news! You can improve your credit score easily by doing a few simple tasks and hiking your score up. In this short article, you will read of 4 simple ways to increase your credit score easily!


Tips To Improve Your FICO Score

PAY YOUR BILLS, ON TIME! This is one of the most important things you can do for your credit. Why? Because when you have bills that you pay in YOUR actual name, it shows up on detailed credit reports. By paying your monthly bills on time, you are raising your score slowly. It takes time, but it does increase the actual credit score over time. Delinquent payments and collections can severely damage your score. 35% of your credit is based on accuracy of your bills being paid, consistently throughout each month.

KEEP BALANCES LOW. Any outstanding debt is frowned upon when it comes to credit scores. It doesn't matter for what reason, all that matters, is that you owe money. Period. So, instead of maxing out every card you have, pay it off soon after you use the credit card. If you pay for groceries on your credit card, make sure you make a payment within two weeks to the credit card company. This way, your balance doesn't max out and your paying off debt as you go. In the long run, it's better for you to make small payments to pay off credit cards rather to leave them hanging months after you've used it.

DON'T CLOSE OUT PAID OFF ACCOUNTS. This is a common fatal mistake people make with your FICO score. You finally get the balanced paid, and then you close the account completely. Shutting down your oldest credit accounts shortens your credit history, which seems to make your credit less worthy, therefore your score can drop. It may look as if you just wanted a way out, and you can't handle the credit responsibility. When you keep it open, it raises your utilization ratio. In simple terms, pay it off, don't use it as much or at all, but make sure the credit account is still open.

GET A SMALL LOAN. Instead of going big, think of small steps. You have to crawl before you can walk, same difference with credit history. In order to get bigger loans, most places require that they have history of your background with smaller loans. This doesn't mean to take out several small loans at one time. Just take one small loan and pay it off quickly. This will instantly raise your credit score, and it's also a great way to build credit, if you do not have any credit history.