First you have to know how your credit score is compiled, as knowing the rules makes playing the game a lot easier.
FICO scores range from 300 to 850. Five major components make up your score.
- 35% Paying on time
- 30% Amount and type of debt
- 15% The length of time you’ve had credit
- 10% The variety of accounts
- 10% The number/types of accounts recently opened (6mos)
- Bring all of your open accounts current and pay on time.
Making sure you don’t have anything late (30 days or more) will improve your score. Your payment history makes up 35% of your credit score.
- Pay off or pay down your revolving debt.
When your revolving debt (credit card) balances are less than 50% of your available credit lines, your score increases.
- Don’t apply for or open any new accounts.
Opening new accounts lowers your credit score, especially credit cards.
- Don’t close out credit cards.
Keep your accounts open even when you’re not using them. Closing down accounts lowers your score. It doesn’t matter whether you or the creditor close them out, it still negatively impacts your credit score.
- Choose to stop receiving pre-approved credit cards.
Most people don’t know that you can opt out of receiving pre-approvals in the mail. But more importantly, in doing this you will receive a slight improvement in your score. There are several websites you can visit; I’ve seen positive results with www.optoutprescreen.com.
This is very helpful thank you
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