It is easy to keep a good score rather than repairing a bad one. Your score doesn’t have to reach rock bottom level before you start paying attention to it. Because repairing a bad credit score is somewhat similar to losing weight. There is no quick fix and it takes time. But luckily you are here because you already have a good score and want to improve it.
So here are a few tips for that:
- On-time bill payment
You may not know this but your FICO scores are affected by your delays in payment of bills. Pay bills on time because delinquency, even of few days can have a huge negative impact on your FICO score. Also do not skip payments. Even if you do, then pay the next ones in a timely manner.
For those of you who do not understand what FICO scores are, here is a brief description of the same. This is a scoring model accepted here in the united states. Every individual has 65 credits already in the accounts. Scores range from 300 to 850. Higher score implies lower credit risk.
- Avoid undue risks
In a fit to increase credit score people take rash decisions. Sometimes it is best to do nothing especially to increase your credit score. Just sit back and relax and avoid risks as much as possible. Keep in mind that taking risks may be fashionable and worthy in other aspects of life but not while scoring credit!
- Pay off debt
Paying off debt is far better than moving it around. In this case, paying off is the best possible option because owing same amount and having fewer accounts may lower your score. Also you can leave old debt on your credit report. Most of the people believe it will decrease credits and hence try to remove to it from the credit history haphazardly. But no such thing happens. You can easily keep your old debt in the credit history without any risk at all.
Do not open new credit cards to increase available credit or close unused cards to raise score.
Eliminating nuisance credit balances is a good way to improve credit score.
- Rate shopping
Use your calendar.Do your rate shopping in a fixed period of time. If you are going to apply for a house loan or car loan or student loan, then you need to keep in mind that the lenders like FICO ignore inquiries made thirty days prior to shopping. The length of yeh shopping determines the amount of credit used.
- Managing credit cards
Proper management of credit cards is necessary for maintaining a good credit score. Especially for those who own a lot of them. It may be difficult to manage a lot of credit cards but at the same time it is better to have one at least. Because those who don’t even have a single credit card are at a greater loss in scoring credit points than those who have responsibly managed a few of them.