Fast Fixes for Credit Scores

November 21, 2009 | 4 Comments

Bad credit scores can cause you to pay more for car loans, credit cards, and mortgages. Here are 4 common credit mistakes to avoid:

  1. Pay down your credit cards. It’s most important to try to pay off revolving accounts such as high interest credit cards. Lenders like to see a big gap between the amount of credit you’re using and your available cedit. Getting your balances below 30% of the credit limit on each card can really help! The best strategy is to pay down the cards closest to their limits.
  2. Use your cards lightly. Carrying big balances on your credit cards can hurt your credit score, whether you pay your bill in full each month or not. To increase your score, try to limit charges to 30% or less of the card’s limit.
  3. Check your limits. Your scores may be hurt is your lender is showing a lower lmit than you’ve actually got. make sure the lender updates this imformation as quickly as possible. You do NOT want to max out a card.
  4. Dust off an old card. The older your credit history, the better. If you stop using your older cards, the issueres may stop updating those accounts at the credit bureaus. It’s a good idea to use the older credit cards every few months to charge a small amount and then pay it off in full when the bill arrives.

Source: www.msn.moneycentral.com


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