Improving Your Credit Score

In this current market environment wherefore and more borrowers are being forced to go with below credit or Sub-Prime loans due to low credit scores, the question is being asked: How do I maintain an above average credit score? Answer: You are your own best resource when it comes to maintaining a good credit score. Here are 10 tips to help make your credit report shine:

1) Pay bills on time -Nothing ranks higher than consistent and timely payments.

2) Have credit cards, but manage them responsibly -Credit cards and installment loans that you pay on time will raise your score. Someone who has no credit cards tends to have a lower score than someone who has managed credit cards responsibly.

3) Maintain low credit card balances -Some experts advise not to use more than 50% of your limit on any one card.

4) Rotate and use all of your credit cards -Contrary to popular belief, a dormant account does not help your credit score.

5) Never use credit cards to pay other credit cards -It’s better to pay down those you have. You can start with the ones with the highest interest rates or balances.

6) Don’t open multiple accounts at the same time -Too many credit report inquiries lower your score and increase your credit risk.

7) Don’t have credit card accounts you don't need -A lot of available credit lowers your score and increases your credit risk.

8) Work with your creditors – A Telephone call to explain why your payment will be late may prevent delinquency from being reported.

9) Know your FICO score –FICO scores range from 300 to 850. Scores of 720 and above are considered top tier. These scores enjoy the best credit options. Conversely, scores of 620 and lower fall into a higher risk category.

10) Check your credit report for accuracy -You can inquire about your own credit through one or all of the credit reporting agencies (Experian, TransUnion, and Equifax) without it affecting your score.

    There are no tricks or quick fixes to getting a good credit score, but you can raise your score over time by demonstrating a consistent history of responsible credit use. With a higher credit score you'll be able to qualify for better interest rates, higher credit limits, and more types of credit than you would with a low score, so it's always in your best interest to manage your credit responsibly. Have questions? Ask your Weichert Gold Services Manager ->they can assist with your financing needs.

Weichert Financial Services - Market Monitor – 12/01/06