Tips To Improve Credit Score

Your financial health depends a lot upon your credit score.  The financial industry labels you as a good or bad risk depending upon the credit score on your credit reports.   Therefore it is truly in your own best interest to learn ways to improve your credit score.

Tip #1 – Find Out Your Score

The pace at which you will improve your credit score all depends on what your current score is.  The first step you will need to take to improve your credit score is to find out what your current score is.

Tip #2 – Get Your Score For Free

You can actually get a free credit score.   You just have to contact the 3 national credit reporting agencies.  Every year, these 3 national credit reporting agencies will give you a free credit score, you just need to make the effort to contact them.   All 3 agencies have websites for your convenience.

Tip #3 – Know A Good Score

Bad Score

If your credit score is between 300 and 750 you need some credit repair.  A credit score within that range is not a very good credit score.   If you need credit repair help, that’s okay.   In tough economic times many people use credit repair help to get their finances back on track.  There are many credit repair services available, you just have to make the call.

Good Score

The Best Tips To Improve Credit ScoreThe financial industry considers a credit score ranging from 750 to 850 to be a good credit score.   When you have a good credit score of 750 – 850, you will pay less on auto loans, mortgages and insurance premiums than if your score is less than 750.

A Perfect Score

If you have a credit score of 850 – the financial industry thinks you are just perfect!!   Achieving a perfect credit score of 850 is a real financial accomplishment.

Tip #4 – Watch Your Payment History

Your payment history means so much on your credit reports.  If you can change a few of your financial habits, you may be able to improve your credit score by improving your payment history.

  1. Pay all of your bills on time.
  2. Avoid missing any of your payments.
  3. If at all possible, avoid carrying credit card balances.
  4. If you cannot avoid credit card balances at least keep your credit card balances low.  Too much debt is bad if you are trying to improve credit scores.
  5. Avoid maxing out your credit cards.  If you spend to the maximum limits on your credit cards, the financial industry considers you a bad risk, they think you are overextended.
  6. Avoid moving your debt around.