How to Improve Your Credit Score
I never paid any attention to my credit score - except once. I was applying for a mortgage, and was forced to document - over and over again - why I didn't pay for the pet travel cage I bought that broke open in the belly of a plane and almost killed my dog. I vowed that I would never again be in that humiliating position - and I haven't. I got rich. And since then, I haven't ever had to be beholden to irrational bank bureaucrats.
That's my recommendation to you: Get rich and finance your own loans. Until you can do that, you will be a victim of your credit score every time you need a loan for a car or a mortgage.
For now, it's a good idea to know what your credit score is. You can find out by ordering reports from each of the three credit bureaus: TransUnion, Equifax, and Experian. You can get all three reports in one shot for less than $20 by going to AnnualCreditReport.com. The higher your credit score, the more likely it is that a lender will consider you to be a "good risk."
If you discover that your credit score needs help, here's some advice on how to improve it from Sandra Block, writing for USA Today:
- Pay off your credit card balance. Your credit score is based heavily on the ratio of debt you carry versus available credit. If your total debt is $50,000 and your total credit card limits are $100,000, you have a "credit utilization" rate of 50 percent. The lower your credit utilization rate, the better. So pay off as much debt as you can.
- Don't close unused accounts. "If you are seeking to avoid temptation, cut up your credit cards, but don't close the accounts," Block says. "Closing accounts will reduce the amount of credit cards you have available, thus increasing your credit utilization."
- Don't open new accounts. Even though it would increase your credit limit and thus improve your credit utilization rate, credit agencies view recent account openings as a sign of financial weakness, and downgrade your overall credit score accordingly.
If, after reviewing your credit report, you see a mistake, dispute it. Block points out: "Credit bureaus are required by law to investigate disputed items, usually within 30 days, according to the Federal Trade Commission."
From Micheal Mastersons Early To Rise
Erik Stark- Gold Key Realty
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