Boost Credit Score Fast - You CAN Raise Your Credit Score If You Do This

A lot of people think that boosting you credit score is merely an attempt to get approved for more credit and enter the vicious cycle of consumerism or needless buying. While this could be applicable to a few people, your credit score does also affect what sort of interest rates and terms you get on your mortgage and education loans for your family. A small percentage difference in your interest rate can result in saving thousands of dollars in interest payments. But of course you knew that. Now, lets get straight to the point and have a look at what you can do to get those scores up within the next few months:

Dont Pay Off ALL Of Your balance

This is a biggie especially with the new credit card rules coming into play. There are two extremes, people who pay up the entire balance (if they can afford to) and the other who pay the minimum amount due month after month. Don't be either of these two people. Keep 10% of your credit line on a few credit cards in use and pay off the remainder of the balance as quickly as you can. You should be carrying a balance of about 5-10% of your credit line when you are close to getting a loan. Please do not take on more credit than you can pay off immediately. You should have enough money set aside in cash to pay off whatever you owe.

Dont Close

When spending gets out of control, we often take the rash step of cutting up our credit cards and closing the accounts. Both of these choices dont really help you. Closing credit accounts could be bad for your credit score because your score takes the number of open credit accounts and the revolving balance into consideration while coming up with the magic number. So, once you open an account dont close it unless you have to fork out an annual fee just to keep the credit card or you have never kept a particular account in good standing.

Dont Open

While closing accounts is not a good idea, the flip side is opening too many accounts is not good either. This is especially true as you get closer to applying for a loan. Multiple accounts opened around the same time in the last 90 days can affect your credit score negatively. Think about it from the creditors point of view. If you have multiple accounts of the same type e.g. retail store credit cards  opened around the same time they could think that you start a credit spree whenever you are short on cash or are likely to overspend. This doesnt have to be an accurate perception. The only number that matters is the score and you should do everything to get it right up there.

Pay Up On Time

This is such a basic step yet you would be surprised how many people miss a payment in any given 90 day period. Don't be late EVER. If you are going to be late on a payment due to extenuating circumstances call up the creditor to discuss your situation. It might or might not help but it wont hurt. A slip up on payments can mean as much as a 80-100 point difference.

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