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Improve Credit Card Scores

By Edited Nov 13, 2013 0 0

Many people fail to realize that they can improve credit card scores and increase their overall ranking pretty quickly.  This is just one of the many things that go into determining your overall rank, but it is a very important aspect.  In fact, you may be able to go from a FICO of 600 to a FICO of 700 in a relatively short period of time, if you are able to follow some of the suggestions I am about to list out for you.  Let’s look at some ways to improve credit card scores and what it will mean to you as you look to make a big impact on your financial future.

How To Increase Rank

When you are looking to improve credit card scores, you will have quite a few different options to keep in mind.  While some will not be possible for everyone, depending on specific situations, all can be attempted to increase the overall rank you will get.  Let’s look at some of the options you will have as you look for a nice point boost.  Listed below are just a few of the things that will be considered in your ranking.  You can use just a few of them, but for the best results, you will want to implement as many of the suggestions as possible if you are serious about finding ways to improve credit card scores and your overall ranking.

Pay Down Balances:  You want to have a very big gap in the actual limits on your accounts and the amount you have charged on your accounts.  For example, if you have, between all of your accounts, a limit that totals $20,000, you will want to have much less than that as a balance.  Those that are near their limits will find it hard to improve credit card scores.  If the gap is wider, your rank will increase.  This is one of the most effective ways to get the boost you are looking for.  It’s a very important piece of the puzzle that you must not ignore if you are serious about making the improvements you need.

Dispute Report Errors:  Find out how to dispute errors in your FICO report for an instant increase.  This is the quickest method you can use.

Limit Use:  You do need to use your accounts and pay them on time.  This will help you out as you look to improve credit card scores.  However, you do not want to use your accounts constantly and increase your balances over time.  It is important to maintain the gap described earlier.  Keep in mind that it is okay to charge when you need to.  In fact, using the accounts and keeping them current will boost your rank, but overuse is going to do just the opposite.  This is just something to keep in mind as you go through the process.

Keep Old Accounts:  If you have a charge account for many years, while keeping it in good standing, it can show stability and help you to improve credit card scores.  This can provide a nice boost to your overall rank without having to do too much to get it, other than wait and keep current.  In other words, it may not be wise to cut up and cancel old accounts you rarely use, since it will show a shorter overall charge account history and possibly decreased stability. 

Pay On Time:  When you are late with your payments, your rank will decrease.  Avoid any late payments.  Not only will you save money by not paying penalties and late fees, but you will notice an increase in your ranking.  This is one of the most important aspects you must keep in mind as you look to improve credit card scores.  It is not to be ignored, or you will not achieve the results you are looking for.

Never Go Over Limits: Like paying on time, it’s important that you do not exceed the preset spending limits on your credit cards to improve your score.  This will save you money as well, just as paying on time does.  Plus, it will show increased stability and help to keep your accounts in good standing, which will help you get the boost you are looking to get. 

Limit New Account Applications:  Don’t go out and apply for tons of new accounts to increase the gap in the total limits and actual balances.  This will end up harming your rank.  Limit the number of new accounts you apply, or simply don’t apply for any new ones until you have paid down your balances, and you will have more luck as you look to improve credit card scores.

Pay Off Past Due Balances:  You may be able to negotiate a debt settlement on your own or have to learn how to deal with collection agencies to make it happen.

What It Will Mean

When you are looking at ways to improve credit card scores, and you implement the ideas and suggestions listed, you will see additional benefits.  Listed below are just a few of the benefits you will realize from following the suggestions that were listed above in this article.

Decreased Interest Rates:  Not only will your charge account interest rates go down, but the rates you would expect to pay for loans will decrease as well.  This can prove to be very financially beneficial, especially if you are in need of a loan.  Borrowing money is much easier when you improve credit card scores, since it is a very big part of the overall ranking picture.  Keep this in mind if you struggle to implement the suggestions listed to help keep you motivated.

Increased Spending Limits:  You will find that when you work to boost your ranking, the charge account companies will be willing to increase your spending limits.   Since you want a big gap in the total limits allowed and your actual limit charged, you will get a nice little boost this way.  It’s sort of like the snowball effect.  As you work to improve credit card scores successfully, it gets easier with time.

Loan Approval:  You will find that you are much more likely to get approved for loans if you improve credit card scores.  Not only will you pay a much more favorable rate of interest, but the approval process will begin to pay off big time.  You will be glad you took the time to work on boosting your overall ranking and will reap the rewards of your hard work.



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