Tips to raise your credit score
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1. Probably one of the most important things you can do to
raise your credit score is to know the three major credit bureaus and their contact information. With this
information you can get your credit report, identify any errors or problems, and
then make any corrections to improve your credit score. The contact information
for the three credit bureaus:
Equifax Credit Information Services, Inc
Address: P.O. Box 740241
Atlanta, GA 30374
Telephone: 1_888_766_0008
Online: www.equifax.com
TransUnion LLC Consumer Disclosure Center
Address: P.O. Box 1000
Chester, PA 19022
Telephone: 1_800_888_4213
Online: www.tuc.com
Experian National Consumer Assistance Center
Address: PO Box 2002
Allen, TX 75013
Telephone: 1_888_397_3742
Online: www.experian.com
2. Keep your credit accounts open as long as possible. This means, for example
if you have used a credit card for years and you finally pay off the balance,
don't close this account. The longer you keep your credit accounts open, the
longer your credit history is, the better your credit score is. A long credit
history can be around 15% of your credit score.
3. Having a variety of credit accounts can actually help your score. For example
having two types of loans is good, having two types of loans and a credit card
is even better. Lenders want to see several examples of how you use credit. Of
course, don't sign up for a credit card just to improve your credit score, just
understand that if you shy away from almost all credit, this can actually lower
your score. The best scenario is to have several credit accounts that you use
sparingly (to avoid too much debt), and pay off the balance monthly.
4. Don't take on excessive amounts of credit. This is an obvious way of keeping
your credit score high. The problem is, most sources don't exactly tell you what
"excessive" is. A good rule of thumb, is to have about one or two credit cards
and one or two other major debts such as a student loan and a mortgage.
In case you are curious... here are the national credit
score averages by state:
| National Average |
680 |
Rhode Island |
692 |
| Kansas |
682 |
New Jersey |
693 |
| Utah |
683 |
Connecticut |
694 |
| Missouri |
683 |
Nebraska |
695 |
| Illinois |
684 |
Pennsylvania |
696 |
| Delaware |
684 |
Wisconsin |
699 |
| Ohio |
685 |
Maine |
699 |
| Oregon |
686 |
Iowa |
700 |
| New York |
686 |
Montana |
701 |
| Maryland |
688 |
New Hampshire |
703 |
| Idaho |
688 |
Massachusetts |
703 |
| Hawaii |
688 |
Vermont |
706 |
| Virginia |
689 |
North Dakota |
706 |
| Wyoming |
690 |
Minnesota |
707 |
| Washington |
691 |
South Dakota |
710 |
| Texas |
651 |
California |
672 |
| Nevada |
655 |
Florida |
673 |
| Arizona |
659 |
Colorado |
674 |
| New Mexico |
663 |
Alaska |
674 |
| Louisiana |
663 |
Indiana |
676 |
| South Carolina |
665 |
Alabama |
676 |
| Oklahoma |
666 |
Washington DC |
677 |
| North Carolina |
667 |
Kentucky |
677 |
| Mississippi |
668 |
West Virginia |
679 |
| Georgia |
668 |
Tennessee |
679 |
| Arkansas |
668 |
Michigan |
679 |
5. Pay your bills on time. This is the most obvious way to increase your credit
score and the easiest. You should know that not paying your bills on time can
lower your score in a SHORT time period, but unfortunately it will take a LONG
time of paying your bills on time to bring your score back up, so just keep that
in mind. up to 35% of your credit score is based on paying your bills on time.
6. Use only a small percentage of your credit. Try to at least keep your debt
below 50% of your credit limit. For example, if your credit limit is 7,000
dollars try to use only 3,500 dollars. The lower the percentage, the better.
If you want more tips on how to
improve your credit, click here to get a 56 page report. Over 100 tips just like
the ones you read above, only 1$, instant download!
7. Try to minimalize the number of inquiries that appear on your credit report.
Every time you apply for a loan or some sort of credit, companies will look
through parts of your credit report (they won't necessarily have access to all
details of your report), these inquiries are noted. Inquiries on your credit
report usually aren't that big of a deal, but if you have alot of them,
companies may become concerned even if your credit score is ok. One way to
handle inquiries is to shop around for loans and credit in short time frame.
Several inquiries made in a short time period (a few days) often are grouped
together and only counted as one. Another smart thing to do is to research loan
companies very well before you contact them. This will allow you to pick the
best companies to work with (based on your situation), thereby lowering the
number of companies you need to apply to in order to get a loan. This is a good
habit to develop regardless of your inquiry concerns.
8. Beware of identity theft. Identity theft can be one of the most devastating
things that can happen to your credit score. The amazing thing is that the
average identity theft victim doesn't find out about the problem until over a
year later! Think about that for awhile...
The subject of identity theft is too large to go over in detail at this website
but just remember, one of the best ways to prevent identity theft is to check
your credit report regularly and look for any unfamiliar credit accounts. If you
find anything suspicious, report it to the credit bureaus mentioned above.
9. Don't overuse loan rate comparison websites. These websites may be easy to
use, free, and very useful, but every time you get a loan quote, this may be
counted as an inquiry. Because these websites are so convenient, consumers tend
to use them too much without even thinking about it.
10. Don't close your credit accounts but if you must... As mentioned in tip two
above, you should not generally close your credit accounts because you want the
longest credit history possible and alot of credit available to you. If you feel
you must close an account (you feel you have too many credit accounts, or you
can't control your spending, etc), make sure you close an account with a short
history (your most recent account) and one with a low credit limit. This may
lower your credit score in the short run but your score will improve over time.
Just make sure you don't close your accounts right before you apply for a loan
as your temporary lower credit score will limit your options.
If you want more tips on how to
improve your credit, click here to get a 56 page report. Over 100 tips just like
the ones you read above, only 1$, instant download!
11. Understand that it is ok to look at your credit report several times a year.
Every time you look at your credit report this counts as an inquiry, but this is
known as a "soft inquiry". These types of inquiries don't really hurt your
credit score. The type of inquiry you need to worry about are called "hard
inquiries". This is the type of inquiry made by lenders and credit card
companies and can have an adverse effect on your credit score.
Question? Comments? send to:
info@raiseyourcredit.org
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