Seven Tips
Here are seven great tips to improve and maximize your credit.
Most importantly, always pay your bills on time.
Keep your credit card balances low.
Get rid of debt faster. That means try to pay off your debt sooner than the allotted time given. If they give you two years to pay off your car, pay it off sooner.
Do not close your current account or open a new one.
Order a free credit report from www.annualcreditreport.com and dispute errors.
Study and know your FICO score.
Keep the debt to income (DTI) ratio less than 30%. To determine your DTI ratio, simply take your total debt figure and divide it by your income. keep all of your credit cards below of 50% of the credit limit, as credit report agencies will consider this to be a maxed-out card. Even better, try to keep them below 30% if you can.
Second, always pay your bills on time. A 30 day late payment can negatively alter your credit score between 60 and 110 points. So pay your bills on time.
Third, order a free online credit report. Third party credit reporting agencies and credit card companies often give incorrect information as to what your score actually is. Be sure you check your credit report for any discrepancies.
