How do I improve my credit score?
I just checked my credit score - it is (embarrassingly) in the high 500s. Yes, it sucks. There's nothing really terrible on my credit report - no bankruptcy, no collections. I was late 30-60 days a few times, but that was back in 2003. Everything has been current and paid on time since then. I believe the thing that is lowering my score is my credit usage/utilization - almost 100%. I have about 5K in CC debt on 3 CCs. Now that I can afford to pay this off slowly, would it be better for me to pay off one CC at a time or a little off each one, gradually paying all 3 off? Does it make a difference? I don't think there's really much more I can do to improve my credit score except to pay off this balance and increase my available credit. Would it help to get a secured card with a high credit limit (which would increase my available credit)??? Help me please.
Public Comments
- Stop borrowing. Start paying down what you owe. ON TIME, if not ahead of schedule. Pretty basic stuff.
- YOU ARE NOT A CREDIT SCORE! CREDIT IS WHAT SUCKS! ENDEAVOR TO LIVE DEBT-FREE.
- YOU COULD GO GET IT CLEARED.
- You should pay the minimum on all your cards, and put any other money you can on the card with the highest interest rate. Keep doing this untill it is paid off. Keep doing this untill all are paid off. It will take time, but you'll be out of CC debt with a much improved score. Another thing to consider, is to get another card with a low interest rate on balance transfers. Doing this will allow you to transfer some of you high interest debt to a new card, but at a much lower interest rate allowing to pay it off much faster. Be careful doing this, otherwise if you'll end up with another maxed out card.
- 1. Use the credit card only when absolutely essential. Pay your regular expenses by cash or a debit card. This will help you budget and not go overboard with credit card debt. 2. Follow repayment schedules like religion. Don't miss out and invite late payment fees, increased APR rates and blocked reward programs. 3. Don't stick to the monthly minimum payment. Pay the maximum you can afford and get that outstanding debt cleared as fast as possible. By just paying the monthly minimum the credit card companies reap the maximum rewards while, as a consumer you pay the maximum interest. 4. Get rid of multiple credit cards. Although this might sound difficult, but if you are struggling to repay on time and, juggling with the repayment dates is causing you to default- it's time to think. If there is a genuine need to keep multiple credit cards, then try to automate their monthly payments. This will ensure that you don't default unwillingly and face the negative consequences. Read more from: http://www.credit-card-gallery.com/article/264,5_not_to_miss_things_for_a_good_credit_score
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- You never want to have a balance with more than 30% utilization of your card limit. So if you can afford to pay down all three cards down to 30% utilization at once that's great, otherwise do one card and you'll make an immediate impact within 30-45 days. Right now, don't go and open any new accounts and don't close any accounts (especially if you've had all of your cards at least two years). You get favorable points for those older accounts and you'll lose some points on those newly activated accounts. Your credit scores are a running snap shot of your habits over the last two years. Really it boils down to this, have you demonstrated the habits of a credit risk (a lot of activity opening/closing accounts, inquiries, high utilization, slow pay)? Or have you demonstrated the habits of a low risk (seasoned accounts, low utilization, on-time payments, limited inquiries)? The stuff over two years old doesn't have the impact of the activities in the last two years. Be a star!
