Life
How to raise your credit score to A+
It is possible to boost your credit score. It requires financial discipline, and attentiveness:
1). Dispute Mistakes and Errors:
Some bills, collections, chargeoffs could be inaccurate, too old or have the wrong date. You may have paid off a debt that still shows a balance outstanding. Getting these small errors fixed quickly will raise your credit score.
2). Know where you stand:
The three main credit bureaus Equifax, TransUnion and Experian provide a free credit report (provided that it is done once in the calendar year). It is worth your while obtaining this credit report, which will provide you with a good indication of where you stand.
3). Get a major credit card:
Retail cards and gas cards can help you build your credit history initially, but to get your scores into 700-plus territory you will need at least one major credit card: Visa, MasterCard, Discover or American Express. If you cannot qualify for a regular card, consider a secured version, for which you make a deposit with an issuing bank. Make sure the card reports to all three bureaus, and try to get a card that converts to a regular credit card after 12 to 18 months of on-time payments.
4). Arrange automatic payments for every card or loan:
Your credit score is very sensitive to whether you pay your bills on time, so never let travel, a busy schedule or forgetfulness destroy your scores. Most lenders will let you set up automatic payments that take an amount you specify, the minimum payment, a set dollar amount or the full balance, every month from your checking account.
5). A balance is a balance regardless of amount:
You have to worry about your credit utilization ratio even if you pay your balances in full each month. The balance that’s reported to the credit bureaus is typically the one on your last statement, not the balance that is left over after you pay your bill. So if you charge US$9,000 on a US$10,000 card, it’s going to look like you’re using 90% of your limit (which may impact negatively on your score), even though you paid off the balance in full when you got the bill.
