If you are planning on buying a new home, or trying to undertake any other financial task that requires borrowing money, I’m sure you’re aware of the importance of having an appealing credit score.  Whether you have good credit, mediocre credit, or your credit score needs rebuilding from the ground up, these steps can help you give your credit score the jump it needs!

 

1)Be on Time! Stay on Time!

One of the most important keys to improving your credit score is making sure you’re payments are made on time.  A long history of payments made on time shows a track record of reliability for lenders. So Bring any late accounts current, and keep all accounts current.

2)Minimize Your Credit Percentage

The credit score report is made on the basis of your debt percentage to the total available credit limit. The ideal amount for how much of your overall credit you can use should be below 30%. Above that and your credit score starts taking a hit.

3)Don’t Cancel Lines of Credit

Once you start paying off debt and freeing up your lines of credit, avoid closing credit cards.  Closing lines of credit subtracts from the total amount of credit one has and changes your Debt-to-Credit ratio which often has a negative effect on ones credit score.

4)Don’t Open Several Accounts Simultaneously

Ok, so you’ve paid down your debt and think you’ll boost your credit score by opening further lines of credit to positively change your debt-to-credit ratio.  Well hold your horses… Although it may sound like a good idea, opening more than just one extra account at a time is a total no no. Lenders get suspicious about your spending behavior and become reluctant to proceed with someone with such a risky attitude.

5)Review your Credit Report for Any Errors

Carefully review all the accounts and check if there are any evident blunders. Also, keep an eye on any unidentifiable accounts. And if you find any errors, get them corrected immediately.