Who else wants a credit score in the 700’s? Are you sick and tired of getting rejected every time you apply for credit? Or being nervous about getting approved for an apartment, or insurance…or even a new job? If you are anything like I was several years ago, anything that has to do with credit is a nerve wracking experience! Why? Because when you know your score isn’t as good as most…the threat of humiliation, embarrassment and rejection always hangs over your head.
Now…..listen up. You don’t have to settle for bad credit any longer than you want to. There is NO magic solution……but there are very simple, very time tested strategies out that can easily improve your score by several HUNDRED points. (and make it happen in a hurry)
Care to learn more? Continue reading as we take a closer look below!
Tip #1: Keep Your Credit to Limit Ratios LOW
It always surprises me how many credit clinics and articles DON’T recommend this. Why? Because how much you OWE…relative to your overall limits, is one of the most important factors in how your score is calculated. The optimal ratio? Somewhere around 20-25% of the available balance. This shows responsible usage of credit, plus it shows you are nowhere near the “red” lines of 60 or 70% or more….where many people predictably get in trouble. (remember…credit scoring is ALL about predictions)
Tip #2: USE the Cards You’ve Got
If you’ve got a bunch of cards that you DON’T use….guess what? That doesn’t show responsible use of credit at all. As a matter of fact….it can actually count against you. (The credit card companies secretly DESPISE customers who don’t use their cards…and keep them with zero balances in sock drawer..:-) And if you pay your accounts in FULL every month? It’s really the same thing. You aren’t really showing responsible use of REVOLVING credit in the eyes of the industry, as strange as that sounds. Remember…the credit card companies don’t make a dime unless you pay interest…..and paying your cards off in FULL each month can actually lead to higher interest rates, and being piled into the poor customer pile in a hurry! (even though this sounds counter intuitive to most of us….paying a little bit of interest every month can actually be a GREAT investment in your credit score)
Tip #3: Dispute, Challenge and Demand!
The Fair Credit Reporting Act (and it’s subsequent Amendments) give you the right to a 100% error free report. Take advantage of it. Challenge ANYTHING you think is unflattering, unfair and untrue. The absolute BEST way to get a credit score of 740 PLUS is to have a blemish free report…in conjunction with responsible, revolving credit accounts you pay on time. Have something that looks BAD? Get rid of it. Challenge it. (it’s your right) Demand it’s removed……and follow up and through!
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