Ways to improve your credit score!

Having trouble with your credit? You are not alone. There are a few ways you can work to get that score up. Here are some tips:

Get a credit card if you don’t have one

Having and using a credit card can help build your score. There is no need to carry a balance; pay off every month. Consider a secured credit card if you can’t qualify for one. These cards give you a line of credit equal to a deposit that you make similar to a debit card drawing off a checking account. Make sure the card company reports your activity to all credit bureaus.

Add an installment loan

The fastest way to improve your scores is to take out a loan and pay it off. Prove you are fiscally responsible! If you’re not ready for a car, try a small personal loan. Again, you’ll want the loan reported to all three bureaus.

Pay down your credit cards

Paying down or paying off credit cards will show a dramatic improvement in your scores. Lenders like a gap between your credit approval and your use of it. Balances below 30% help; below 10% is better.

Use cards lightly

Keep your balances low. To help, set up a text alert when your balance gets close to 30% of your credit limit. Paying before the payment due date ensures that the lowered amount is reported to bureaus.

Make sure your limits are reported correctly

Your score might be lower than you deserve if your credit limits are listed as lower than they really are. Ask your credit card company to correct the problem.

Older is better

The older the credit history the better. Don’t close an account you’ve had for a long time. Be sure to use them periodically to keep them active. Perhaps a recurring expense could be paid with this account.
Source: MSN Money