TIPS on Bettering Your Credit Score

Everyone wants an excellent credit score and any one could use tips in building your credit to be excellent.

Follow these few tips and you will be working your way to having an excellent great credit score.   

1) PAY ON TIME!  Did you know about 35% of your credit score is based on your payment history? All it takes is just one payment to be 30 days late and that can drop your credit score dramatically. If you have been late in the past start paying on time now.  As the time passes those late payments will become just a memory for you and your score will steadily rise.  

2) KEEP YOUR ACCOUNTS OPEN!  When paying off a balance it's always wise to keep the accounts open. The length of time your credit accounts or credit lines has been open it is worth about 15% of your credit score. When you pay off an account the wise thing to do is to leave that account open. It keeps your credit lines higher and its a benefit for you because your credit gets better. The longer your account has been open the better it is for you and your credit score.

3) MAINTAIN YOUR BALANCES BELOW 30% OF YOUR CREDIT LINE! Your debt to credit limit ratio is another 30% of your score.  For instance if you have a $5,000 dollar credit line don't let the balance go over $1,500.  This will affect your credit score. So if your balances are high now you need to reduce them. Every time you do it helps raises your score. If you have more then one account that is near maxing the credit limit, try to transfer some balances from another account that is low on the balance and try to even out your accounts. This also helps your credit scoring and from having your interest rates rise up. Most credit card companies provides bonuses and incentives for having a pay on time credit history like earning a free roundtrip airline ticket.

4) DO NOT TAKE OUT NEW CREDIT UNLESS NECESSARY! New lines of credit may lower your score by about 10%.  If you are in the process of getting a mortgage do not apply for any additional credit until after the closing. If you plan on buying a new car or a big screen tv it's always best to wait until after the closing on your house. 

5) TRY TO USE CREDIT ONLY FOR IMPORTANT PURCHASES! For instances like mortgages, vehicles, or for business expenses. Certain types of credit you use could affect your score. Be very careful because many people don't realize it. Just remember, CREDIT IS EVERYTHING!!!

Following these simple tips will help you build an excellent great score. Having an excellent credit score allows you the opportunity to qualify for the lower interest rates on mortgages. Having an excellent credit gives you  better interest rates when shopping for a vehicle. So remember using your credit wisely is a key to having stress free life.  It is also one of the keys to building wealth!