10 tips to Improve Your Credit Score and
Develop a Solid Credit History

Your Credit score is based on the data available for you on the day that the score is requested by your lender. Remember, your Credit Score can vary from month to month and even day to day, sometimes. To add to that uncertainty, the credit bureaus keep their scoring models confidential.

Even so, there are some specific ways to improve your credit score and develop a solid credit history. At the end, it is all up to you. Any resource that will "help" your score is pulling your leg! All they will do is tell you these tips and charge you when you get it for free right here.

1. Pay your bills consistently and on time.
   Being diligent about getting those bills in before the due date is the most efficient way to improve those scores. Have you made late payments in the past? Take heart! the scoring models all take into account that almost everyone misses a payment once in a while. In addition, understand that a late payment this year weighs more heavily that a late payment 3 or 4 years ago.
   
   
2. Keep your Debt Reasonable.
   The rule of thumb for a good credit score is to keep your balance below 75% of your available credit. For example, if your credit limit is $1000, keep the balance below $750. For the best ratings keep that balance below 50% of available credit.
   
   
3. Have some Credit Card and Installment Accounts
   Having accounts that you pay on time raise your credit score. Having no accounts actually looks worse, This is because the credit models have no basis to create a score for you.
   
   
4. Rotate the cards you Use
   Since an unused account actually counts against your credit score (unlike many will tell you!) Rotate the cards that you use. Even if you don't like using credit cards, charge a tank of gas once a month and pay off the balance, then use the other card next month. This will keep them active and report that you make payments on time and raise your credit scores.
   
   
5. Close your unused accounts.
   The credit scoring models understand that it's good to have a cushion for emergencies, but having access to thousands of dollars at a moments notice makes you a poorer credit risk. In addition, an account that has not been used actually begins to count against your score and the longer that account is unused the more it counts against you.
   Note: an account that has been open a long time does increase your scores, so just use it once in a while and keep it open. This is really the best idea here.
   
   
6. Don't open too many Accounts at once
   Every time you open an account, your scores go down, although they do rebound after time. This applies to taking a mortgage, buying a car or getting a credit card. What the agency models do is lower your score for a few months so that you don't get into trouble. If you open 3 or 4 accounts at once, the credit computer models see that as a sign of trouble and will actually lower your score far enough that you cannot obtain more credit.
   
   
7. Inquiries Lower your Scores.
   Keep credit checks to a minimum. Shopping for the best rate is a good idea, but don't give away your Social Security number until you have decided who you will apply with. These inquiries are interpreted as a sign that you are actively seeking credit and that you may be in financial trouble, not just looking for the best price.
   
   
8. Check Your Credit Report Annually
   These days you can obtain a free credit report once a year. Get yours and check for errors. I actually had a Sears Account on my report from my Dad that was opened 12 years before I was born! It never hurts to check and make sure everything is accurate. Just like changing the batteries in the smoke detector, getting a credit report should be on your list. It does not count against your score to check your own credit report.
   
   
9. Work with your Creditors if you will be late
   Often, if you just call and let your creditors know you will be late on a payment, they do not report this. A simple phone call can save your credit scores.
   
   
10. Avoid Credit Help Agencies
    Be very caredful of these counseling companies. Most of these agencies really do not give you any more advice that is written here. In addition, some who offer "one payment" actually collect the money from you, take their "fee" and then pay the companies. They do nothing more than you could do yourself. Others who offer a lower balance to pay can destroy your credit for years.
    
    

Harry Smith email Harry@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-514-9000	Drew Smith email drew@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-703-7770
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