10 Tips For Improving Your Credit Score!

If you've ever had any financial problems, big or small, chances are good that your credit score reflects those problems. When it comes to a credit score, higher is better.

What types of money problems lower your credit score?

• Late payments
• Going over your credit limit
• Having too many credit cards with balances
• Having too much available credit (even if it is not all being used)
• Having too much debt compared to your income (even if you've never paid late)
• Accounts that have gone to collections
• Bankruptcy
• Debt settlement

But even if your credit score is low - and causing you to have higher interest rates or even get turned down for loans and credit cards - you can work to improve it.

1) Get a free copy of your FICO credit score at www.MyFico.com. You need to sign up for free trial but can cancel the service after you receive your score.

2) Get a free copy of credit report from www.AnnualCreditReport.com. You are entitled to one free copy from each of the 3 credit bureaus once per year.

3) Check your credit report for errors. Look very carefully, and make sure your credit report is as accurate as possible.

4) Dispute any errors that you find. You can dispute online, on the dispute form that comes with a mailed copy, or by writing a letter. Any errors that cannot be verified must be removed. You can also ask for verification and removal of any negative items.

5) You must pay bills on time. Everyone can make a mistake and miss a payment. But if you consistently pay your bills late, you'll pay 2 ways - with a lower credit score, and with late fees. So come up with a strategy that works for paying on time.

6) Pay down your debt. Pick one credit card bill and add an extra $10, $20, $50 to the minimum payment. And make sure to STOP using your credit cards, otherwise you'll simply be "treading water" and will never get out of debt.

7) Don't close any credit cards. Having credit cards is not bad in itself. Having too many cards is very risky. So put away your old cards in a place you won't see them, so you won't be tempted to use them. And if you do decide to cancel a credit card, pick a newer one. The older ones help you establish a credit history that helps increase your credit score.

8) Don't max out any of your credit cards. If money is real tight, this may be impossible. And if you're already maxed out, read tip # 6 above very carefully!

9) If your credit is really bad, then apply for an unsecured card, a personal loan, or get a co-signer. These will help you establish a positive credit history, and raise your score.

10) Don't apply for more credit unless you really need to! Each time you apply for credit it lowers your score. So unless you get a really good deal that will help you out, don't apply for more credit.

Fixing your credit problems won't happen overnight. But it won't happen by magic either. You need to work hard to get control of your financial situation. And once you do, you're money problems will start to get easier, and your credit score will start climbing!

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