5 Ways To Raise Your Credit Score

By Author: J.J. Yong
Total Articles: 963
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Improving a FICO score takes around one to six months. The duration is affected by the seriousness of the debt issues. How long a negative mark is listed depends on your state's statute of limitations and also the transaction types. On the other hand, positive credit will stay on a report as long as the account remains active.

There are five ways that can speed up the process of improving your credit score:

Approach #1: Pay your monthly bills on time

There can be an adverse effect on your credit score if you miss paying your monthly bills, e.g. phone and utility bills. Therefore, pay your bills on time to increase your score.

Approach #2: Make timely payments for all your debts

All your secured and unsecured debts must be paid off before their due dates every month. If you have financial problems, you should contact your creditors to discuss. They may help by reducing the minimum amount you have to pay each month. This will avoid affecting your credit rating negatively.

Approach #3: Avoid balance transfer if possible

Avoid doing balance transfer if you intend to raise ...
... your credit score. Although the terms of the card balance transfer may be favorable, it is not the right moment. This is because opening and closing accounts too frequently reduces your credit score.

Approach #4: Maintain unused credit card accounts

Closing any unused credit card accounts can reduce your FICO score. Instead, maintain and monitor them closely. Report any inaccurate info that should not be in your credit report.

Approach #5: Attempt to keep a low outstanding balance

FICO scores are reduced if your available credit declines. So your available credit should be kept at around 60% by keeping your outstanding balances low. This can be proof to the credit reporting agencies that you are responsible.

While raising a FICO score takes time, it is worth the effort as it helps to improve your personal finances in addition to enhancing your money management.
For more information credit score chart and credit score improvement, visit CreditScoreEssentials.com.