What is the best way to increase my credit score to 750?
I have a $200 credit card and paying a monthly $15 plus the 12% APR. How much credit points does it give me each month? What is the best way to get a quick credit score of 750 within a year? Will getting a credit card with $10,000 limit and pay the 12% APR and monthly payment for it? How much credit score points will it give me for it?
Public Comments
- Your credit score is made up of the following: Payment history - 35% Amounts owed - 30% Length of credit history - 15% New credit - 10% Types of credit used - 10% It sounds like you're just beginning to establish your credit history; so the best thing you can do for yourself is to always pay your bills on time (that's 35% of your score). Next, if you can get a credit card with a $10,000 limit (and only charge a little on it and pay it in full each month), that will help the 30% that is based on amounts owed (they want to see a small amount owed in relation to the total credit available to you). The length of your credit history will take care of itself in time. New credit (10% of your score) is generally bad, but obviously you need new credit at first. What they don't like is to see people opening up a bunch of new accounts because it might mean you're getting in over your head. Finally, the last piece is types of credit -- credit card, auto loan, mortgage, etc. They like to see a variety of debt because it gives them a wider basis to judge your history. But my FICO score is over 800, and all I have are two credit cards and a mortgage (I pay for cars with cash; so I've never had an auto loan); so don't feel you need more than a couple of credit cards to have a good score. Good luck!
