Tips For Raising Your Credit Score
By villageanne
@villageanne (8553)
United States
July 4, 2007 7:23pm CST
I have taken an interest in credit scores as of late. We just purchased a new minivan and we also have a large mortgage payment each month. I hate large bills. In fact I pay my garbage bill annually just so I don’t have to make monthly payments on it. I just hate monthly bills.
We did not have any trouble getting a loan to purchase the minivan with but it was the waiting for the approval that drove me nuts. I just hate loans and the entire process that goes along with it.
Here are some things that we are trying to do to get our credit score raised.
1. Pay every bill on time.
Did you know that A late payment will instantly drag down your score. It only takes a few months history of timely payments, however, can help boost it.
2. Pay down the cards that are maxed out first.
You'll get points deducted from your score any time you charge more than 50 percent of the limit on any kind of credit card. We do not use credit cards. We used to but we have not used one for over 10 years. I hate credit cards. Those companies just want my money. LOL
3. Do not cancel any credit cards.
Did you know that one third of your score is based on how much of the credit available to you that you are actually using. Canceling credit cards will automatically decrease the amount of credit you have available. This seems odd to me but it is the way the score works. It is better to stick the cards in a drawer until your score is back on track. If you want to cancel them make sure you dont more than one at a time. It is suggested that you cancel one then a few months later cancel another.
What kinds of tips can you offer to help raise ones credit score?
6 people like this
15 responses
@AmbiePam (92481)
• United States
5 Jul 07
That last tip is really weird. I canceled the first credit card I ever had. Then I got a new one and that company gave me the biggest credit limit I had ever had. I have to admit though, I would cancel them anyway. I'm just too afraid that someone else would get that info and use that account. These days, you don't need someone's credit card to use their account. Ah, technology.
3 people like this
@villageanne (8553)
• United States
5 Jul 07
It surprised me too but for the score, it looks better if you have a card but do not have a large balance on it. Weird. If you close them all out at once, they think you are a risk. I dont know how they think these things up. LOL
2 people like this
@AmbiePam (92481)
• United States
5 Jul 07
Well, I only had one, and I pay my balance off every month. I guess I should be fine. But it IS important to read our credit report. I did a year ago and found something on there that had nothing to do with me. I was glad to know so I could contact someone and have the accuracy reinstated.
1 person likes this
@kykidd (6812)
• United States
5 Jul 07
One suggestion that I might make is not to let anyone pull your credit too often. Too many inquiries in the last 12 months is one of the options listed on a credit score information disclosure. Some others are: Time since most recent account opening is too short; Insufficient length of revolving credit history; Too many accounts with balances.
Hopefully these tips are helpful. Good Luck to you in raising your credit score.
3 people like this
@emeraldisle (13139)
• United States
5 Jul 07
Although this might sound like a strange one make sure if you use the public library to return books on time and pay any fees. Some systems will report to crediting angencies any fines owed. Yeah I know, you wouldn't think they would but some do.
If you have low credit score and have trouble getting credit check into the rent to own places. Get something small and do those and make sure you pay on time. They do report to the agencies and can boost your points.
2 people like this
@emeraldisle (13139)
• United States
5 Jul 07
Yeah they can be, you do have to watch. The thing is though if you are trying to raise your credit score they do help with that. Paying cash doesn't. Also one thing to look at, if you have poor credit, some of them the interest rate is lower then the high intrest credit cards out there for people with bad credit. Many even have 90 days same as cash. So you have to look at it all and double check that they do report to the crediting agencies. They can help give your report some good things on it.
2 people like this
@ceciliarae8 (14)
• United States
5 Jul 07
Rent-to-owns are kind of a ripoff though. I know you're suggesting something small as the purchase, but even then, it is usually better to save up the money and buy it outright.
3 people like this
@kelly60 (4547)
• United States
5 Jul 07
I have a terrible credit score, but it isn't because I have done anything wrong. I just never used credit, and so I never built up any credit. I don't like the idea of credit cards and have never felt the need to have one, so I use only debit cards. I know that I should have probably built up some sort of credit over the years, but I have always felt that if I couldn't afford it, I should do without it.
@maddysmommy (16230)
• United States
5 Jul 07
Thanks for these tips villageanne. My husband and I are trying to establish a credit so these sure will come in handy. I had not realised that if you spend more than 50% of the limit that your score goes down. I need to email these tips to my husband LOL thanks again!
3 people like this
@xkristalx (230)
• United States
5 Jul 07
I know you said you don't like loans or credit cars, but I used to work as an account manager for a company that handled Capital One's accounts. I have a couple of tips for raising your credit score.
Let's say I was going to buy a car. The car dealer offers financing through their bank. I apply and get approved for the price of the car which is $20,000. I then go to my bank and take out a $20,150 dollar loan which covers the cost of the car and the dealers financing fee. I use that loan to completely pay off the debt to the car dealer.
Another example of the same method would be:
I am going to France. I plan on spending $5,000 total for my flight, lodging, food, etc. To pay for this I was going to put it on my credit card. I go on my trip and spend the alloted amount. Once I return I take out a loan and completely pay off the trip on my credit card.
An easier way to build your credit is to take out a credit card with a policy like, "No interest on items paid off within 30 days of purchase." Then use this credit card for very small purchases, like a pack of gum or a soda. Then immediately pay off these purchases on your credit card.
2 people like this
@villageanne (8553)
• United States
27 Feb 08
These tips that you added make perfect sense to me. Thanks for adding them to the discussion.
@keepermykitty (2573)
• Canada
3 Aug 07
I went to the site your talking about , my credit score semi ok as I`m just establishing it ...
I found the information you shared is more than helpful .
I`ve been trying to figure out what all these credit scores mean so I can improve mine .
I`ll never drive again but I might want to buy a new home , I am on provincial Disability so I don`t know my rights on buying a home ...
Thats why I am trying to build my credit , so I can buy a home thats comfortable for me ...
Do you have any more ideas on building credit ???
Thank-you so much for sharing this with us all ...
1 person likes this
@kgwat70 (13388)
• United States
2 Dec 07
I am always conscious about my credit and my credit score so hopefully I can give some helpful advice. Obviously you never want to be late on payments. You should always pay more than the mininum payment to help keep your score up You should never go higher than half of your credit limit as well. Like you mentioned, do not cancel credit cards. It is best to have only one credit card so you do not get yourself into debt problems. Get copies of your credit report at least once a year to make sure there are no errors. Do not go around applying for credit cards often. Having a lot of inquiries on your credit report can hurt your credit score, except auto and mortgage inquiries.
1 person likes this
@kgwat70 (13388)
• United States
22 Jul 07
Paying our bills on time is very important and even better if we can pay more than the minimum amount on our credit cards and loans. We should also not go over 50% of our credit limits on our cards, if we have them. The higher the balance the lower your score will be and any late payments will lower the score, especially car or mortgages. On the news they said one late payment on a car payment can lower your credit score by 100 points. Also, credit inquiries can also effect your credit score as well. The more inquiries on the report the lower your score, except for auto and home loan inquiries. Do not go around applying for credit cards frequently.
1 person likes this
@bestfriends (876)
• Australia
24 Jul 07
I didn't know all about this. I live in a different world than you. I come from the Philippines. This thing is new to me. Although, I often times hear credit score etc, here in mylot or websites. I just would like to thank you for putting up this information hahaha. You educate me.
1 person likes this
@KrisNY (7590)
• United States
6 Jul 07
These are great tips- I too have a mortgage payment- : ( Had no problem getting the home mortgage- Shortly after that I purchased a new car- I have paid that off in full – about 6 months early- But I have racked up a credit card debt- It really sneaks up on you- I have only 1 card- I just recently sent an application to switch cards and transfer the debt- to a 0.00 % APR card for the first year- I think I got into the mentality of I don’t need any more loans- so I don’t care about my credit- BOY was I wrong- I have been stressing a lot lately over this- So my advice is even if you don’t want a loan (which I still don’t)- keep you score up—you just might need it someday! I’m working back to a great score- Not paying bills late-!
@happythoughts (4109)
• United States
11 Jul 07
My bank told me to have atleast 30% available on each line of credit to keep your score high. Other wise you show as a high risk beacuse you have used all you have and they assume you cant afford to pay it back.
@amanasan (26)
• Philippines
5 Jul 07
i hope i got your point right. i am also a credit card holder and there was a time it ballooned coz there was no way that i can purchase but thru it. its a long story, but whats important was i tried to find out the liquid assets that were available, turned it to cash and paid off totally all credit card debts.
as far as increasing financial credibility, investment more than spending is the key to all these. we should look for liquid investments, ie mutual funds, properties, so as to increase our own credibility and then borrowing will come easy
2 people like this
@ceciliarae8 (14)
• United States
5 Jul 07
I'm a HUGE proponent of Dave Ramsey's approach to debt management and financial planning.
1 person likes this
@sergeantrom (5721)
• United States
2 Dec 07
Good info you provided. I made the mistake of cancelling cards after paying off. What a shame I didnt know this before. The credit industry really makes it difficult for you.
