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Increase your credit score in six easy ways

By George Hauser
Published: Monday, April 12th, 2010

In the hopes to increase your credit score and get the loan you need, you come across numerous credit score tips that tell you what to do. However, not all of these will always guarantee effectiveness. More than that, some of them are also too difficult to comprehend. 

Here are some of the easiest to understand credit score tips that will work for any credit holder. 

Be certain that your creditors report to credit bureaus

Before you make an application to a certain creditor, do a little research and find out if they report to the credit bureaus consistently. Some creditors don’t report to all the three credit bureaus. This is okay as long as they report everything about their clients’ credit activity. 

If your creditor only reports delinquencies to the credit bureaus, then there’s no chance for you to build good credit. Apart from that, your credit score could very well suffer for there isn’t enough data on your credit report to increase it. 

Get secured credit card

One of the credit score tips that are effective especially for those who are on the way to repairing their bad credit is to get a secured credit card. This kind of credit card will help you control your spending. More than that, you should remember to keep all your credit card balances low and make your payments on time. Your score will gradually increase with your use of a secured credit card. 

Dissolve co-signed accounts

Married couples usually get joint credit accounts. In fact, most credit score tips will suggest that you get a co-signer if you are just starting to build credit. However, there are instances when you should dissolve your joint accounts, like after filing divorce. If you still have your name on an account after divorce, you are still responsible on the payments. During the divorce process, credit score tips advise you to pay off these accounts and have your name removed from them. 

Talk to your creditor

When you see a financial crisis coming its way, you should notify your creditor about your payments. This way, both of you can come to terms for a different payment procedure. You can also negotiate for lowering your interest rates. Most credit card companies decrease their interest rates for a certain period. You should take advantage of this time to reduce your balance which then increases your credit score. 

Ask for a credit limit increase

What most credit score tips suggest is to not go beyond the credit limit and to maintain low balances. However, given a very low credit limit makes such tips impossible. If that’s the case, you should consider asking your creditor for a credit limit increase. This is especially advised when your accounts are almost reaching your credit limit. This saves your credit score from dropping. 

Use your credit card wisely

You should control your urges to use your credit card for almost everything you need to purchase. Other than that credit score tips always remind consumers to be updated with their credit limit and available credits. Explaining your delinquencies on your credit report will not increase your credit score so you better avoid having them in the first place.

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