2 Ways To Bring up Your Credit Rating
You Have Probably Been Lied To
You are not to blame, almost all of what you pick up about your credit rating is not right. One person says close your accounts, another says keep them all open. Who Can You Trust?
There is really only one way to raise credit scores, please FICO. Only one personal credit score matters in the US and that is FICO, which stands for Fair Isaac Company. They compose the rules, and so you might as well play by their rules.
Sometimes Doing Nothing is The Best Solution
No matter whether you have no credit or poor credit, it is important to know that time is on your side. Doing nothing will always raise your credit score eventually. Rest assured that time heals all credit score problems, but it may be stressful if you have an aggressive debt collector hounding you.
Proper Credit Utilization
One of the most prevalant myths about credit is that you should pay off your card every month. If you think about it logically, credit scores are for lenders, not borrowers. Paying off your credit card every month does stop interest payments, but then the lenders are not making money. Lenders could hurt your credit score by lowering the credit line since they figure they are not making any money off the account.
To raise credit scores most experts that have looked at the FICO system recommend utilizing 30 -60% of your available credit every month. By using 30 – 60% of your credit limit, you show lenders that you are a responsible borrower, and they make money as well.
Another trick is to take advantage of 0% interest cards. This saves you the interest payment but leaves you in the perfect 30 – 60% usage rate the guidelines reccomend.
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