There are five categories that affect your credit score.
Here’s a strategy for each one to bring up your overall score fast.
1. Pay your bills on time.
Payment history affects nearly 35% of your score. Do whatever it takes to be timely.
Suggestion: Set up automatic payments, keep stamps on hand, and maintain your budget.
2. Keep credit balances below 30% of your limit.
Around 30% of your score is based on how much credit you have access to and how much you are using. If you continually reach the limit on your cards it will reflect poorly on your score.
Suggestion: Restrict credit card use to a minimum.
3. Don’t cancel credit cards to up your score.
Approximately 15 percent of your score is based on how long you’ve maintained your credit cards. A cared you’ve had for years does more for your score than one you’ve just obtained. Having no credit history at all can really throw off the score, so keep your credit card.
Suggestion: Pay off credit cards you have had for a long time, and keep them paid off if possible.
4. Don’t apply for too many credit cards.
Close to 10% of your score is determined by the number of times lenders request your credit report. Lots of requests might indicate that you are desperate for credit and might be headed into trouble, or are already there.
Suggestion: Do not continually transfer credit to new credit cards with introductory interest offers.
5. Watch the kinds of credit you use.
About 10% of your score is based on the types of credit you use. There are secured loans and unsecured loans.
| Secured Loans | Unsecured Loans |
| • Car Loans | • Student Loans |
| • Mortgages | • Credit Cards |
Unsecured loans are considered riskier on your credit report. Suggestion: Minimize debt that does not have equity or collateral.
Other Resources
• www.annulacreditreport.com – The only site where you can get a FREE credit report
• myFICO.com – Check your credit score from the company that calculates the credit score
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