Tips for How to Improve Credit ScoreWhat's so important about a good credit score anyway?"your credit score determines the best rate you can get!.. "
Why should you even be concerned about how to improve credit score?? Just a few years ago, a credit score of 720 would position you for winning the best interest rates and the highest loan amounts. But banks are really tightening the qualification parameters on premium rates as well as the amounts they will lend. Now, you must have a credit score of 760 or better in order to qualify for those great rates and generous loan amounts. It takes years to build credit history. It can also take years to turn a bad one around. But you can get in the game now and drive up your credit score in months instead of years. Here are some good tips for quickly improving your credit score (they may surprise you): · Do not think in terms of paying off your credit cards. Think in terms of paying them down. Stop charging, and make double payments for a few months. This will give your credit rating a quick boost. The credit bureaus look favorably on accounts that stay below 30% of the credit limit on the card. (i.e. if your card has a $6000 limit, keep the balance below $2000) · Do not close old credit accounts. A long history of well-maintained credit is a major factor in getting a good score. · Do not let those old accounts stay inactive for more than a year. Using the account even once a year and paying it off immediately will raise your credit score and build a long-term credit history. · Do not overload any one account. If you have three cards, keep balances around 30% of the limit on each. That is better for your credit score than keeping two of the cards paid off, and the third card at 90% of its limit. Your credit rating is a major factor in determining how much money you can borrow and how much interest you will pay. Play the game wisely, and you will quickly gain the benefits of a high credit rating.
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