Your credit score is a three-digit numerical ranking that represents your ability to re-pay debts, such as a mortgage or an auto loan, if creditors were to award a loan. The higher the credit score the better (850 is the highest), as this can equal a larger loan or a lower interest rate. You can access your credit score via one of three credit bureaus--Experian, Transunion or Equifax. If your score is lower than you would desire, utilize these tips to improve your score both for the short- and long-term.
Step 1
Pay off your loans or credit cards to where your outstanding balance represents no more than 30 percent of your overall credit limit. For example, if you have three credit cards whose limits total $10,000, you should owe no more than $3,000 total on your credit cards overall. This is one of the fastest ways you can improve your credit score as many other portions of your credit relate to years of paying off bills.
Step 2
Call your credit card issuers in order and ask for higher limits on your credit cards. While you should not use these higher limits as license to spend more, raising your limits can help to boost your credit score.
Step 3
Call your lenders and ask for a goodwill adjustment on a late payment that may appear on your credit history. While this request often has to be in writing, removing this late payment record can be a quick way to improve your credit score.
Step 4
Ensure you have a good mix of credit accounts, such as auto loans, credit cards and mortgages. While too much debt is not a good thing, a few loans of varying types can signal to a creditor that you are able to pay off a variety of debts.
Step 5
Read the listings on your credit report, checking for late payments, fully paid loans or items (such as unpaid bills) that should have previously fallen off your report. While it is rare, credit card bureaus can have errors on their reports.
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