Five practical steps to take to improve your credit score and get a life.
Pay Down Your Credit Cards
How much? According to my Mortgage Broker friends, paying down you cards by slightly more than 50%, and keeping the balances under this amount can add up too 100 points to your score.
Avoid "Same As Cash" Offers
Offered many times as furniture stores and electronic depots, these type credit lines are considered higher risk than conventional credit cards will will effect your credit rating accordingly. Does this that mean you should never take advantage of these, sometimes, very good offers? No, just know how it works, and perhaps wait until after the close of escrow to open this type account.
Pay Your Bills on Time
Seems like a no-brainer, but you'd be surprised. If you're the well meaning but disorganized type, ask you bank about automatic bill payments that go out electronically. This can save you time, hassle, and your credit score.
Pay Off Debt, Don't Just Move It
I know that saying yes to that Zero percent interest rate seems like a good idea, but unless you are going to close out the first card (but wait, now you've just closed part of your credit history!), this could come back to bite you. Why? Having too much available credit on multiple cards is more likely to lower your score than having the same amount of debt from fewer companies.
Keep Your Cards Open
Don't close unused cards, and in fact, use then every once in a while for small purchases that you pay off at the en of the month. This will help retain and build a longer credit history.
