These days, credit worries plague most American households.
Many people face problems stemming from poor credit, but are clueless as to how to make things right.
Just flip on your television and within a few moments you will see at least one ad for keeping track of, protecting, or helping your credit score.
But all this information is coming from companies that want your hard-earned money, so which one can you trust? Below are just a couple of simple and sure tips to raise your credit score, and they are not as complicated as you might think.
The first thing you should do is pay your bills on time.
It is the single most effective way to raise your score and keep it at a decent level.
Your payment history comprises a large portion of your score, and if you have been late with payments your score will feel it.
Do whatever you can to get loans, mortgages, and credit cards paid on time.
The longer you wait the more it will hurt your credit score.
Once an account goes to collection it will be on your report for seven years, whether you pay it off immediately after that or not.
So do not let it come to that.
If it already has, talk to a credit and debt counselor, work things out with your overdue accounts, and then begin to pay everything on time.
There is no quick fix for that situation, but once you have gotten back on track you can stay on track and that will help to raise your credit score in the end.
The second thing you can do is reduce the overall amount you owe.
Try to pay off loans and credit cards as soon as possible.
Companies looking at your credit score want to know not only how much credit you have, but also how much you have used.
If you are close to your limit then there is not much wiggle room for another debt, and that will be reflected in your credit score.
However, once you have lowered the amount you owe or even paid everything off entirely, do not close your accounts.
Cut up your cards, never use them again, but keep the account open.
The longer you have had your accounts, and the longer they are in good standing, the better off your credit score will be.
Closing old accounts shortens your credit history, and can hurt your credit score.
Many people face problems stemming from poor credit, but are clueless as to how to make things right.
Just flip on your television and within a few moments you will see at least one ad for keeping track of, protecting, or helping your credit score.
But all this information is coming from companies that want your hard-earned money, so which one can you trust? Below are just a couple of simple and sure tips to raise your credit score, and they are not as complicated as you might think.
The first thing you should do is pay your bills on time.
It is the single most effective way to raise your score and keep it at a decent level.
Your payment history comprises a large portion of your score, and if you have been late with payments your score will feel it.
Do whatever you can to get loans, mortgages, and credit cards paid on time.
The longer you wait the more it will hurt your credit score.
Once an account goes to collection it will be on your report for seven years, whether you pay it off immediately after that or not.
So do not let it come to that.
If it already has, talk to a credit and debt counselor, work things out with your overdue accounts, and then begin to pay everything on time.
There is no quick fix for that situation, but once you have gotten back on track you can stay on track and that will help to raise your credit score in the end.
The second thing you can do is reduce the overall amount you owe.
Try to pay off loans and credit cards as soon as possible.
Companies looking at your credit score want to know not only how much credit you have, but also how much you have used.
If you are close to your limit then there is not much wiggle room for another debt, and that will be reflected in your credit score.
However, once you have lowered the amount you owe or even paid everything off entirely, do not close your accounts.
Cut up your cards, never use them again, but keep the account open.
The longer you have had your accounts, and the longer they are in good standing, the better off your credit score will be.
Closing old accounts shortens your credit history, and can hurt your credit score.