There are many ways to raise your credit score and sadly many consumers are in a position where they need to raise their credit score due to failing to pay their current bills in a timely fashion. There are many programs currently being touted online and even on television that promise to help get you out of debt and raise your credit score. Although there are some companies and debt relief agencies that can help a consumer get out of debt and raise their credit score there are even more that do nothing except put that same consumer even more in debt thereby increasing their financially related stress. However, the truth is a consumer can avoid these entire fly by night debt relief companies and raise their credit score on their own with legitimate techniques that are easy and quick to implement. The fastest and easiest method to raising your credit score is to make timely payments to your creditors for a period of time until the debt is finally paid off. They key here is to pay off those bills with a monthly amount that equals at the very least the minimum payment. This combination of on time monthly payments will do two things for you. The first benefit is youre actively paying down your debt which will allow you to see progress as you eliminate your debt and institute a sense of purpose towards a goal of eliminating your debt. The second and most important benefit is based on making those minimum payments on time for an extended time period of say 12-24 months. This eliminating of debt combined with lowering your debt to income ratio significantly increases your credit score. Remember though your credit score will only increase if you make your payments on time and as long as the amount paid is greater then or equal to the minimum payment allowed. On a side note if you are currently making your monthly payments to your creditors on time and digging yourself out of debt while increasing your credit score you absolutely must avoid applying for any additional credit irregardless if youre eligible for it or not. There is one main reason behind this bit of advice and it centers on an inquiry against your current credit score and the decrease in credit it causes you. Its a common known fact that a normal credit inquiry can lower your current credit score by as much as five points. Instead of applying for more credit concentrate your efforts on raising your credit score with some of the following methods. After you pay off a credit card dont close out the account. Instead keep the credit card and either dont use it or use it occasionally while making sure to pay it off entirely each month thereby increasing your credit score. It is better to have fewer cards rather then more. For instance you would rather have three credit cards versus having ten credit cards so feel free to cut down on your overall number of open credit card accounts just make sure to keep at least one or two cards on your account that you use sparingly and pay off each and every month. Another piece of valuable information is to actually review your credit report to make sure there are no visible errors. On the off chance youre able to find some errors you should make every attempt to correct those errors because they can only improve our credit score. One final word of caution every time you fail to successfully pay off a debt in the required timeframe it does count against your credit score and stays on your credit record for up to seven years. However the penalty against your credit score does gradually decrease as time progresses. |
