How to Raise Your Credit Scores!

Probably one of the best things you can do for raising your score is getting more credit. You want to have 3-5 revolving accounts showing on your credit report. If you don't have enough I highly recommend opening some new accounts to build your credit.

A very common misconception that people have is that as long as they remove negative information that is reporting that their score will go up. NOT TRUE! Credit scores are calculated on a number of factors, some of which include credit history, credit usage, and payment history. Since 15% of your score is based upon how old accounts are it's not always wise to close or remove an account from your report because you will be shortening the amount of time on your report.

Another tip for the accounts you may already have is keeping your balance under a third. Thirty percent of your score is based upon your available credit. If you have a $300 limit but your balance is up to $250 than that starts to deduct from your score. Anytime you need to qualify for something and raise your score, your balances need to be under 30%.

The last little bit of advice may seem obvious but a lot of people don't put weight on it. Pay your bills on time! A late payment will show on your credit for 7 years, and the more you have the less likely you are to get new credit since the FICO program bases 35% of your score on your payment history. This can have the most detrimental effect on your score and is very hard to reverse the effects of.

:)

Matt

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