Improving your credit score is something that everyone needs to do at some point in their lives. No one has perfect credit throughout their lives, and there will be times that credit needs to be improved. When this happens, there are several things you can do to improve your credit and get it back on tract. The better your credit is, the easier your life can be. You are able to get better interest rates, better loan terms, and you will be able to get the loan you want if you have a good credit score.

The first way you can fix your credit is to start paying your bills on time. Your bill payment history makes up 35 percent of your credit score, more than anything else. If you are over 30 days late on a bill, then it is going to lower your credit. The more bills you have had late in the past year, and the longer they have been late, the more your credit score will go down. Therefore, by starting to pay your bills on time, you can begin to improve your credit score easily. Within a few months to a year of paying your bills on time, you will have improved your credit score dramatically. At that point, you need to make the commitment to keep paying your bills on time.

Second, you should stop using your credit as much as you can. It is important that you keep the amount of credit you use low because if you use too much of your available credit, it will lower your credit score. For example, if you have a credit card with $10,000 available credit on it, and you use $8,000 of that, then you have used 80 percent of your available credit. You should try to keep the credit you have used below 30 percent of your available credit. The amount of credit you have available makes up 30 percent of your credit score, so it is very important to minimize it.

Third, you want to maintain a good credit history, which is 15 percent of your credit score, so try and keep your old cards, but pay off the balances on them. Closing the cards will not do anything. However, if you have more than four credit cards, close some because you don’t want to look like a compulsive borrower.

Fourth, don’t open new credit cards unless you only have one. If you only have one credit card, get another and stick with that. You don’t want to have too much new credit on your account if you are repairing your score. This makes up 10 percent of your credit score.

Lastly, you should diversify your credit. The type of credit you have makes up 10 percent of your credit score. If you have a mortgage, auto loan and credit cards, then you are in good shape.

Building your credit is not easy, but Turning Point Debt Settlement offers debt settlement solutions that will help you get your credit into a fixed fee, with monthly payments that span one to three years. No interest is put on the original loan amount, and we pride ourselves on providing honest and straightforward results to its clients.

This entry was posted on Saturday, January 24th, 2009 at 10:49 pm and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.