Your credit score is a direct reflection of your financial well-being. Now for some people this is a good thing. For others, however, this is very bad. A credit score greater than 680 will qualify you for a Federal Housing Authority mortgage. Below that, you are out of luck. So here are three things you can do to make sure you’re on the right side of the 680.
The first thing to do is make sure all your bills are up to date. In other words, get a copy of your credit report and make sure there are no items reported as past due. If there are, you must dispute them as inaccurate, if they are, or have them paid up to the current billing cycle. Doing this will show that you are trustworthy and the score will show the same.
Second, don’t max out all of your credit limits! Just because a credit card company gives you a limit of $ 10,000 doesn’t mean you have to use it all! The main thing with this is not to use more than 50% of any credit limit granted. It has been found that to really maximize this section, you should never exceed 30% of the credit limit. Doing this step will also greatly increase your score.
Lastly, don’t cancel your credit cards after you’ve paid them off. An important part of your credit score is the average age of the accounts. The older your credit card accounts, the higher your credit score. It’s always tempting to tell the credit card company that they just charged you thousands of interest for hiking, but this is not the best thing for your credit score.
If you follow these three easy steps, you will see that your score increases quite quickly. The interest payments you will pay will be reduced and you will have little fear when applying for loans. There are many tips and tricks to help you win the credit score game. With a little work, you will get a score of 800.