Econ Info

A credit score tells banks and other lenders whether or not you are responsible with credit that is extended to you. Whenever you apply for a bank account, car loan, mortgage or credit card your credit file will be pulled from a credit reporting bureau. Many individuals have excellent scores while some may need to improve their scores quite a bit. Here are three top methods to raise your credit score.

First, pay off some debt! Your credit cards should not carry debt from month to month. The original credit card accounts required that they be paid in full each month. Credit was a convenience and not a method of borrowing money.

Second, make all payments owed on time. Paying late is shown on your credit report and can change the score that you receive. Even making a payment late is better than not making a payment at all. Contact the creditor if you face severe financial problems and need assistance with making your payments. They may be able to work with you.

Third, do not open/close many accounts. Many individuals may open several credit card accounts when they only need one. Opening many accounts causes your credit report to be pulled multiple times as well as lowers your credit score. Only open the credit card and loan accounts that are needed.

Tags: Credit Score