Five Ways to Improve Your Credit

Dated: August 4 2022

Views: 11

1.       Pay your bills on time.  Payment history accounts for roughly 35% of your score.  So paying bills on time is the most important thing you can do.  If you’re behind, get caught up and then stay current.  If you’re struggling, contact your creditors to work out a payment schedule.

 

2.      Increase the length of your credit history.  It accounts for 15% of your score.  Canceling an old card or getting a lot of new credit within a short time span can hurt your score because it lowers the average age of your accounts.

 

3.      Keep credit card balances low.  Credit utilization makes up 30% of your credit score.  Try to keep the amount you borrow below 25% of your available credit.  Even if you pay off your credit cards every month, the average balance will still impact your score.

 

4.      Minimize new credit requests.  They account for 10% of your credit score.  Every time a potential lender asks for a copy of your credit report, an inquiry is recorded.  If you will be applying for a loan in the near future, don’t apply for any new credit cards beforehand.  You can also ask the three main credit reporting agencies-Experian, Equifax, and Trans-Union, to stop unsolicited credit offers.

 

5.      Maintain different types of installment and revolving debt.  About 10% of your score depends on the type of credit used.  How you handle revolving credit (like credit cards) carries more weight than how you deal with installment debt (such as car loans & mortgages).

Blog author image

Brian Ripp

Helping clients with their Real Estate needs; buying or selling.Successfully listing and selling residential real estate in the East Bay since 1985.510-710-4905 Brian has been a full-time, profes....

Latest Blog Posts

Three Common Mistakes of New Homeowners

If you are a new homeowner, make the most of your ‘do it yourself’ attitude by avoiding these common mistakes; 1.     Relying on chemical drain cleaners. 

Read More

Five Ways to Improve Your Credit

1.       Pay your bills on time.  Payment history accounts for roughly 35% of your score.  So paying bills on time is the most important thing you can do.;

Read More

Transform the area under the stairs

Extra Storage:Add a freestanding cabinet to use as a linen closet or install built-in shelves for extra pantry items.  Play Area:Consider transforming the empty space into a fun place for the

Read More

Real Estate Investment Buying Tips

Foreclosures and bank REOs are pulling a new wave of novice investors into the market, some of whom are just a little clueless.They see the price and they say, wow! I can buy that house and turn it

Read More