How to Increase Credit Score

The is a lot of stress these days on the big ticket purchases. To really live the life you want, you might decide you need the new car or a your first home. All of these things are tied very closely to your credit score. Any lender will look at your credit score and from that determine the interest rate, and therefore, the financing you can afford. If you can increase credit score, you can get approved for more financing options at much more attractive rates. But how does one increase credit score? There are a couple tips you can follow to increase credit score and get the financing you want.

The first way to increase credit score is to make sure it isn't going down. The first fight is to eliminate bad credit. Make sure you don't have any delinquent accounts or any credit cards over the credit limit. Call your lender to ask if you can work out a payment schedule if times are tight; many lenders are more than willing to renegotiate if they have reason to believe that it will help them get the money you owe. Getting rid of bad credit is the the most important step to increase credit score.

A key to increase credit score is to make sure you have an accurate picture of your credit. A credit report should be examined once a year to make sure that everything is accurate and that no fraud is taking place. It also might help you find some debts that you have neglected and can bring up to date or pay off completely to help you increase credit score.

Finally, to increase credit score is to establish good credit. For this reason, you should close open or unused credit cards. An unused credit card can actually help increase credit score. It helps by making your utilization score seem bigger - the more unused credit available to you, the higher your credit score. In other words, an open and paid off credit card makes your credit available higher and makes it appear that you're further away from maxing out. Consider opening a new card to build good credit - but don't use the card!

Increase credit score is a big deal for people that want to buy a home or car. If you increase credit score by just a few points it can mean savings of thousands of dollars - and the house of your dreams!

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