Saturday, March 5, 2011

How to Raise your Credit Score, Even in this Economy!

With the economy the way it is right now it is essential to have a high credit score. People who are unemployed or underemployed may have to rely on their credit now more than they ever had to before. If your credit scores are lackluster, there are some things you can do to improve them. However, it will take work on your part and some passage of time to get your scores where you would like them to be.

It should be noted that the following advice is not for people who have a credit score of around 740, as there is little you can do to improve your score if it is that high to begin with. Even if you manage to improve your credit score by a few points above 740, there is generally no more additional benefit. Here are some tips that most of us can use to improve our credit score.

 Stabilize your finances.

If you are unable to meet your financial obligations, you will not be able to raise your credit score. Your credit score is based in part on the making of payments on time. The first thing you need to do is to get in control of your finances, and then you can focus on improving your credit score through responsible management of credit cards.

 Don't abrubtly stop using your credit

If your finances are in decent shape, you have to use your credit from time to time. That does not mean racking up a huge bill that you have to pay interest on. It is different to use credit, than it is to carry a balance on your cards. What you want to do is use your cards every now and then to make purchases, and then pay them off promptly so that you don’t have to pay finance charges.

 Monitor your credit reports

It is super important to check your credit reports. If you don’t check your reports you may miss out on information that is inaccurate. Such inaccuracies include: reports saying that you paid late when you paid on time, things that should have been wiped off of your record because seven years have passed, and there may even be accounts on your report that aren’t yours. Check your reports and fix any problems that you find.

Improving your credit score will not happen overnight. It will take time, effort, and awareness about what’s going on with your credit in order to make your scores rise. If you employ the above suggestions, they will help you to get your credit in line with what you want it to be. Check back next week for more ways to get your credit in shape.

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