Improving Your Credit Score Part 1 – Preferred Types of Credit & Amounts

December 30, 2009

Credit Basics

Improving Your Credit Score Tips

So what are some specific tips for boosting or improving your credit score?

Amounts Owed Tips

  • Keep balances below 30% on credit cards and other “revolving credit”
  • Pay off debt rather than moving it around
  • Don’t close unused credit cards – keep them open and use them once every few months
  • Don’t open a number of new credit cards that you don’t need, just to increase your available credit – that will actually lower your credit score

Length of Credit History TipsCredit Repair

  • Don’t open a lot of new accounts too rapidly – that will lower your average account age, which will lower your score

New Credit Tips

  • Do your rate shopping for a given loan within a focused period of time – FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur
  • Re-establish your credit history if you have had problems – Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
  • It’s OK to request and check your own credit report – It won’t affect your score as long as you order your credit report directly from the credit reporting agency. will provide you with one credit report per year from each of the 3 agencies: TransUnion, Equifax, and Experian

Types of Credit Use Tips

  • Apply for and open new credit accounts only as needed – Don’t open accounts just to have a better credit mix – it  won’t raise your credit score
  • Do not use or open Department Store cards – you are better off having credit card accounts

Get some goodwill

  • If you’ve been a good customer, a lender might agree to simply erase that one late payment from your credit history –  make the request in writing.  It can’t hurt to ask
  • Ask that accounts be “re-aged.” If the account is still open, the lender might erase previous delinquencies if you make a series of 12 or so on-time payments
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2 Responses to “Improving Your Credit Score Part 1 – Preferred Types of Credit & Amounts”

  1. Monica Says:

    Thank you angella. I just use That is a pretty good service.
    .-= Monica´s last blog ..Mike Ballantyne in Action! =-.

  2. Donna Dalton Says:

    Curious how long credit inquiries stay and how much my score is affected by credit inquiries. I applied for car loans on a few websites, and now 15 inquiries show up. Also, my friend applied for a mortgage through a website like ditech and she got a LOAD of inquiries on her credit report.
    .-= Donna Dalton´s last blog ..To Do Software to Help You Get Things Done =-.

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