Get a better credit score for 2008
Hello-
Re: Get a better credit score for 2008
It’s the time to start making New Year’s resolutions again. Time sure does fly by doesn’t it? I’ll pretend you nodded your head in agreement.
The common goals people say they want to achieve are losing weight, quitting smoking, reducing stress, drinking less alcohol, and saving more money. How come getting a better credit score is not one of the top resolutions on the list? Your credit score is used for so many things nowadays that many people would be much better off financially if they had a better credit score.
You can save on all your loans and credit cards by raising your credit score. You can save more money for other things, such as college and retirement, by having a higher credit score.
Here’s what goes into your FICO credit score:
- Payment history - 35%
- Amounts owed - 30%
- Length of credit history - 15%
- New credit - 10%
- Types of credit used - 10%
So how to get a better credit score? Take a look at what goes into it from above and then see what you can do. Your payment history is 35% of your score. Make it a point to pay all your bills on time. Setup automatic payments to make sure all your bills are paid on time. Amounts owed on your credit cards is 30% so work more hours, get a second job - do what you have to do to earn more money to reduce the amount you owe on your credit cards. Pay more than the minimum and your debts will go down faster. Charge less.
Try and buy things with cash more than with credit. If you stop adding charges to your credit card, it will be easier to pay off what you’ve already charged.
Call your credit card companies and ask for a lower interest rate. Point out how long you have been a good customer and how you have paid your bills on time and ask for a lower interest rate. Call, write, and ask again and again.
15% of your credit score is your based on the length your credit card accounts have been open. If you have an account that is unused, leave it open. Your score will drop if you close that account. The longer the account has been open the better.
These 3 tips alone make up 80% of your credit score. Follow these tips to help you get a better credit score for 2008.
Have a healthy, happy, and prosperous New Year!
-Adam
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Written by Adam on December 30th, 2007 with no comments.
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