Tuesday, March 27, 2012

How Can I Improve My Credit Score?

Having anything but a good or great credit score can cost you a lot of money in higher interest rates and insurance premiums over time. Here are five tips that will help you to slowly, but surely, improve your credit score over the next few months.
* Pay Your Bills On Time: This is probably the simplest way to make sure that your credit stays the same or gets better. Many people have a damaged credit score due to late payments. Set up recurring bills to automatically be taken from your checking account each month so that you never have another missed payment again. 

* Pay Down Your Debt: Having too much debt, even if your credit cards aren't maxed out, can drastically reduce your credit score. Old debt is equally as bad. Make a plan to pay off your debt as quickly as you can. One of the best ways to do this is to focus on eliminating small debts completely. You'll have the satisfaction of making progress no matter how small it is. 

* Check For Errors: The easiest way to get a rather quick increase in your credit score is if you find an error on your credit report. Make sure that you check your reports for any lines of credit that aren't yours or anything that was reported incorrectly such as a late or missed payment. Just one error could cause your credit score to drop anywhere from 30-100 points. By disputing it, and getting it removed, you'll see an increase in your score.

* Don't Open or Close Any Credit Cards: While there is a mixed consensus on how many cards you should have for an optimal credit score, if you have bad credit, it's best to leave your cards as they are. Don't open any more and don't close any, even if they are paid off and you don't plan to use them. 

* Don't Max Out Your Credit Cards: By using too much of the limit of any one credit card, you risk lowering your credit score. Thus if you have several cards that are maxed out, pay them down as fast as you can and in the future, only use 20-30% of your credit limit. 

While you probably won't notice any drastic changes in your credit score overnight, during the next few months of following these tips, you should see your credit score steadily going upwards. Be patient as you go through this process of paying off old debts and learning better financial habits so that once you obtain a good credit score, you'll know how to maintain it forever.

About the Author

This article was written by Phill representing CompareLogbookLoans.co.uk – an independent financial website bringing together and comparing available logbook loans.


  1. debt is facing by almost every one now a days.. People wants to improve their credit scores to live better.. You shared great topic regarding this.
    keep sharing.

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  3. The most common “sin” a cardholder can commit is maxing out his credit limit. This is unadvisable for the fact that it will reflect on your credit standing. Some even do cash advances after purchases, which results to a fluctuation with the interest rate on their monthly billings.

    Cinthia Mull

  4. Great tips! An impressive credit score will help a lot in financial transactions such as taking out a loan. In case you have a bad credit score, there are companies who can help you improve that. They offer payday loans with low interest rates and great payment options to help you improve your credit score.