ANSWERS: 1
  • An improved credit score can help you save money by getting you a lower interest rate on financing. It takes time and discipline to improve a credit score and to develop good credit habits.

    New Credit

    If you need more credit, then increase your current credit accounts rather than applying for new ones. Adding credit accounts lowers your credit score, but increased credit limits on your existing accounts can help to boost your score.

    Potential

    When you pay at least the monthly minimum due on each credit account and you pay on time, you help to increase your credit score.

    Considerations

    When you pay off a credit card, do not cancel the account. A credit card with a long history and no balance due helps to increase your credit score.

    Types

    A mixture of installment accounts, such as auto loans, personal loans and credit accounts, can help improve your credit score. Having credit card accounts and no installment loans can lower your score.

    Fun Fact

    Federal law states that each consumer in the United States is entitled to one free copy of his credit report from each of the three major credit reporting agencies every 12 months. Get your free report each year and check the information for accuracy.

    Source:

    MyFICO.com: Improving Your FICO Credit Score

    MSN Money: 7 Fast Fixes for Your Credit Scores

    Federal Reserve Board: 5 Tips for Improving Your Credit Score

    More Information:

    Equifax Credit Reporting Agency

    Experian Credit Reporting Agency

    Trans Union Credit Reporting Agency

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