You are here: Home > Improve Credit > Improve Credit Score

Improve Credit Score – Tips to Maximize Your Results

After credit repair has successfully removed the derogatory accounts many consumers are left wondering why their credit score hasn’t jumped up in the manner that they thought it would. This is largely in part to the fact that improving credit scores requires that consumers demonstrate that they have recently used their credit responsibly. Once your credit reports have been corrected and your debts settled there are still steps to be taken in order to boost your credit score.

Pay Down Your Balances

Ideally, you want all of your credit card balances to be at twenty percent of their limit or below. This shows potential lenders that you are not living beyond your means and you are mature in your use of credit. In addition to looking at your raw credit score lenders will analyze your credit-to-debt ratio which is why it’s preferable that you keep those balances low. Paying balances will improve credit scores almost immediately

Open a New Line of Credit

Americans with excellent credit ratings typically have 3 to 5 open lines of revolving credit and an installment loan and mortgage of some sort. If you happen to have less than 3 cards it may be in your best interest to add another line of credit to your credit profile. This will help improve yoru credit score by lowering your credit-to-debt ratio, assuming you don’t go max out the card.

Keep Old Cards Open and Active

A large factor in your credit score is the length of your credit history - the older your credit profile, the more your credit will improve. Very often consumers believe that closing unused accounts can only help their scores. This isn’t always the case. If you close your older accounts it will appear to lenders that you’re a new face in the world of credit. When that happens they tend to be more hesitant to offer you a loan or a new line of credit.

Moreover, you want to make sure that you use the older accounts that are still open. Dormant accounts run the risk of having their credit limits lowered, or worse, of being closed altogether. Your credit scores are likely to suffer as a result.

Not only are these tips to maximize your credit scores, but they’re tips to maintaining solid purchasing power and financial independence. They involve a good deal of budgeting and rigorous guidelines on when or why you should be using your credit cards. However isn’t your credit future worth it?

Repair My Credit Now