What are the steps we can take to improve our credit scores?
- Stop applying for credit.
- Pay down your balances in your accounts.
- Pay accounts on time.
- Build a good credit file
Why should we stop applying for credit?
Each time we apply for credit we get a hard hit on our credit report. Knowing this is important because each hit on our credit report can cost us on our credit score. Did you know that each hit can take between 2 to 5 points off our credit score? It is important to not apply everywhere so that we do not hurt our credit score.
How can paying down our credit card balances help us?
First when you think of your credit score. Thirty percent of it is, the amount we owe on our credit cards versus our credit limit. It is always best to only use 10% of our credit limit. This will ensure that we get the maximum of points we can get.
Does paying our accounts down help us?
Paying your bills on time each month can also help you raise your credit score. If we pay on time, each month. We will have a good payment history and remember your credit score is made up of 35% of your payment history.
Does having a good credit file help?
Yes, we want to build our credit file. When creditors look at your credit file, they like to see a good mix. This would be about 1 to 2 installment accounts, 3 to 5 revolving accounts, and a payment history that is longer than one year to show how credit worthy you are.
And remember if you need any help with your credit, We are here to help. With our free consultation we can get you on the right track.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalized plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.