Raise your Credit Score: 8 Easy Ways

Wherever you go, your credit score sticks with you through life.  However, most consumers do not know how their score is created, much less how to improve it.

If you check out FICO (Fair Isaac Corporation), there are five factors that need to be considered in calculating your credit score rating.  These are: debts you owe, types of credit you use, new credit you get, length of credit history, and your payment history.  Your score will depend on how well you are handling these areas given a specific period of time.

The good news is: you can raise credit score all by yourself!  Here are 8 easy ways for you to do it:

	Request a copy of your credit score through any of the three nationwide reporting companies (TransUnion, Experian, and Equifax). It is usually free once every year.  Read through it carefully. If ever you found that there is a record of an account that is not yours, immediately go to FTC National Resource for Identity Theft in order to find out the actions that you must take on how to handle this matter.
	It may be very tempting for you to just close all your active credit cards at the same time, but if you do so, you can actually trigger a concern with your future lenders. The best thing to do to manage your unused credit cards is to close these accounts over a certain period of time, say one card per month. Then, make sure that the status of your credit score report will change as you close each account.
	Resolve all your past due accounts as soon as possible to clear up your credit score report. You can also add a notation on your report to explain why the debt is still outstanding
	Make it a goal to use 50% or less of your cards’ credit limit at all times.  If you have a credit card balance that is close to your credit limit, it can lower your score
	Before you open a new account, weigh your options first especially if you already possess a healthy score and history. Yes it is true that opening new accounts may establish better credit history or increase your available credit, but rapid account buildup can also lower your score if it appears risky to the lenders.
	Always be responsible in managing your credit. Resist too much charging and pay on time.
	If you have had some difficulties in the past in making payments on time, you can still make up for it by keeping your debts low and staying current on all your bills from now on.  If you find it hard to obtain new credit, consider acquiring a secured type of credit card to re-establish a better credit score
	Avoid too much movement of your credit card issuer. It may be very tempting to get the new offer on zero percent promotion that you have received in the mail but remember if you open extra unnecessary accounts – it could lower your score. Also, be careful in reading the fine print on these offers, as there might be penalties or hidden charges that would cost you more in the end.
	Always be responsible in managing your credit. Resist too much charging and pay on time.

In all of these, always remember that it will take up to 30 days for these things to be reported and reflected in your credit reports history.  Although it would seem like a tedious process, just hang in there because these steps do work.