50 Ways to Raise Your Credit Score

1. Open New Credit Accounts with High Limits

Get a credit card with a high limit. Keep the balances low, and use the credit card to establish a credit history or boost a low credit score. Remember: the more available credit on a credit card, the better.

2. Add Your Name to Someone Else’s Good Account

Piggybacking off of someone else’s good credit is an easy way to improve credit rating. Your credit report will benefit each time the primary account holder makes a payment or payoffs the credit account.

3. Dispute Delinquent Credit Accounts

Contact the collection agency and ask for written proof of delinquency. If the collection agency cannot present such evidence, they must cease all collection attempts and delete the collection account from your credit report.

4. Reduce Revolving Debts

Paying your bills on time does not secure a high credit score. A high debt-to-income ratio also plays a role in credit rating. Too many revolving credit accounts can damage your credit score. Limit you number of credit card accounts and keep the balances low.

5. Pay Bills on Time

One late payment can reduce your credit score by 10 – 20 points. On the contrary, you gain about 5 points for timely payments.

6. Get Current on Past Due Accounts

Even if a creditor stops collection attempts on delinquent or past due accounts, the account does not miraculously vanish. Once a past due account is reported to the credit bureaus, your credit score takes a nosedive. Make an effort to repay the old debt, and ask the creditor to delete the negative remark from your credit report.

7. Settle Judgment Accounts

Make payment arrangements with creditors. Consistently submitting payments may prompt the creditor to delete the judgment from your record.

8. Do Not Close Unused Credit Account

Keep all credit accounts open. Because length of credit influences scoring, closing an old account reduces credit history, and decreases credit score.

9. Limit Credit Inquiries

Excessive credit inquiries within a short period will severely reduce your credit score. Inquiries stay on your credit report for two years. To maintain a high credit score, limit yourself to two credit inquiries a year.

10. Do Not Max Out Credit Cards

Maxed out credit cards indicate little self-control, and increases your debt ratio. Even if you submit timely payments, your credit score can remain in the low 600’s. Reduce debts, and keep balances below 25% of the credit limit.

11. Do Not File Bankruptcy

A bankruptcy may seem like the only solution to severe debt problems. However, the long-term effects are worse. After a bankruptcy, your credit score can plummet 100 or more points. A bankruptcy is more serious than having past due, collection, or judgment accounts.

12. Get Credit Advice

Using a credit counseling or debt consolidation agency can decrease your credit score. Choose agencies that do not report “third-party assistance” to the credit bureaus. To avoid scams, select a non-profit organization.

13. Correct Credit Report Inaccuracies

Unfamiliar credit accounts can damage your good credit rating. Check your credit report annually, and work diligently to get errors corrected.

14. Close Accounts Slowly, Starting with the Newest

If you must close a few credit accounts, do so slowly and start with the newest accounts. Closing your oldest credit account will reduce your credit history, and lower your score.

15. Make Sure the Creditor Reports to the Credit Bureaus

Some creditors only report delinquent or past due accounts to the credit bureaus. If trying to establish or rebuild credit, good remarks are essential. Before applying for new credit, be certain that the creditor consistently reports to the bureaus.

16. Get a Secured Credit Card

A secured credit card is perfect for persons who can’t get approved for an unsecured credit card. Keep balances low and pay the bill on time. Gradually, your credit score will improve.

17. Get a Savings or Checking Account

18. Dissolve Joint Accounts after a Divorce

It is common for married couples to have joint or co-signed accounts. If your name remains on an account following a divorce, you become responsible for the payment. During the separation, payoff all joint accounts and have your name removed from the account.

19. Avoid Consolidating Debts or Balance Transfers

Moving debts from card to card will not shrink the balance. Balance transfer offers are good if the new interest rate is low. To be of an advantage, you must payoff the balance.

20. Negotiate Better Terms with Creditors

Due to high finance fees, paying the minimum payment barely reduces the balance. Contact your creditors and negotiate a lower interest rate. For a short period, the credit card company may lower your rate, which gives you the chance to reduce your balance and increase your credit score.

21. Apply for an Auto Loan

Rebuilding credit history after a bankruptcy is important. Since getting approved for a credit card is challenging, apply for an auto loan. Auto loan lenders offer a variety of programs to help persons re-establish credit. While the interest rate is high, an auto loan can be a stepping stone to good credit.

22. Ask for a Credit Limit Increase

If your credit accounts are approaching the limit, ask for a credit limit increase. A higher credit limit will increase your available credit and protect your credit score.

23. Pay Credit Cards Early

If you make a large purchase with a credit card, but don’t want the new balance reported to the credit bureaus, payoff the balance early. Once the statement arrives, pay the credit card within a week.

24. Occasionally Use Your Credit Cards

Occasionally use your credit card for small purchases. Unused accounts are reported as “inactive” after six months.

25. Pay Utility Bills on Time

In the past, utility companies only reported delinquent accounts. However, more and more utility companies have started reporting good accounts. Make an effort to pay your electric, natural gas, and other utilities on time.

26. Maintain at Least One Good Account

If you can’t maintain regular payments on all your credit accounts, make an effort to maintain a good standing with at least one. This one good account could potentially save your credit score.

27. Something is Better than Nothing

If you cannot pay the minimum payment, submit what you can. Some creditors are flexible and will accommodate persons with a previously good payment history.

28. Shop for Loans within a Short Period

When buying an automobile or home, multiple credit inquiries are okay. In order for multiple inquiries to count as one, they must occur within a 30-day period.

29. Live Within Your Financial Means

Create a spending plan, and stick to it.

30. Stop Using Plastic

Practice self-control and reserve credit cards for emergencies.

31. Don’t Open Too Many Accounts within a Short Period

Acquiring multiple accounts within a short period looks bad on your credit report. You could potentially invite a lot of new debt, and new accounts shorten the average age of existing credit accounts.

32. Wait 12 Months Before Applying for a Mortgage

Buying a home is a good way to quickly raise your credit score. On the other hand, if you’ve recently went through a bankruptcy, foreclosure, or repossession, wait at least 12 months before applying.

33. Payoff Existing Loans

If you have installment loans, student loans, automobile loans, or personal loans, make an effort to payoff the accounts. A good credit score is determined by credit acquired and credit paid.

34. Pay More than the Minimum Payment

If you want to reduce your total debt, pay more than the minimum. When possible, submit a lump sum. This quickly increases your available credit, and can raise your credit score by 20 points overnight.

35. Ask Creditor to Delete a 30-Day Late Item

Even if you have a good payment history, one late or missed payment can decrease your score. If you forgot to mail a payment, or the payment was received late, ask the creditor to keep the account current.

36. Enroll for Automatic Bill-pay

Setup automatic bill-pay with your bank or credit union, and have monthly payments deducted from your checking or savings account. This puts a stop to late payments, and keeps your score high.

37. Resist the “In-Store Credit” Temptation

Applying for in-store credit can reduce your score by 20 points.

38. Avoid Cash Advances

Credit card cash advances are attractive. However, high finance fees can make repayment difficult.

39. Do Not Exceed Your Credit Limit

By no means exceed your credit limit. Aside from the additional fees, your credit score will drop.

40. Pay Balances in Full

Payoff credit card balances each month. Consequently, you avoid the debt trap, and maintain a high credit score.

41. Avoid Finance Companies

These accounts look bad on a credit report. By eliminating finance company loans, you could raise your credit score by 20 – 30 points.

42. Re-Open Closed Accounts

Accounts closed by consumers can decrease credit score, especially if the account was older. Contact the creditor and re-open the closed account. This maneuver could raise your score by 30 points

43. Lower Overall Debt Ratio

Keeping credit card balances low is a start. However, endeavor to lower your overall debt balances. This includes installment loans, student loans, automobile loans, etc. Pay down balances and your score will quickly rise.

44. Have at Least Three Open Accounts

Having more than one credit account can boost your credit score. If possible, strive for at least three good accounts.

45. Do Not Apply for a “Capital One” Credit Card

With so many consumer complaints, Capital One tops the list of “credit card companies to avoid.”

46. Write a Short Explanation on Your Credit Report

Explaining a delinquent account will not increase your credit score. However, it may induce a creditor to extend a new line of credit, which could help raise your low score. If loss of employment or illness contributed to credit problems, include a short explanation beneath the delinquent account.

47. Prioritize Debts

If you can’t pay all your debts on time, pay the most important debts first. Maintain a high credit score by paying credit cards, mortgage payments, and auto loans by the due date.

48. Know Your Credit Score

Check your report every 6 – 12 months and know your credit score.

49. Get Credit in Your Own Name

Establishing your own independent credit is important. In the beginning, you may need a co-signer for a credit card or auto loan. Once you’ve established a good payment history, have the co-signer’s name removed from the account.

50. Add Information to Your Credit Report

Stability can increase your credit score. Including additional information such as employer, address, banking account numbers, date of birth, or telephone number puts lenders at ease. As a result, the lender is more apt to approve your credit request.