Boost credit score.....Something we all want.
The higher that 3 digit number, our credit score is, the better our financial picture will be. It results in lower percentage rates on loans, lower insurance rates and at times a better job.
Here are some tips to boost your credit score or at least not let it slide downwards.
Look at your credit report.
Keep your credit utilization down low
Inquiries and account use to boost credit score
Since inquiries do have an impact make sure that when you do take out new credit, it is only a very occasional event.
If you have accounts not in use, a better idea is to use that card for whatever purpose you had in mind for the new credit card. This way you skip the application process and the hard inquiry that accompanies it.
There will be no downward dip in your score and you won't be in danger of that older account being closed by the creditor for inactivity.
AND that older card not used has more history attached to it. That is something of value in your quest to boost your credit score. So if you actually have to make a schedule to use cards do so otherwise that card maybe slated for closing by the creditor for inactivity. No boost credit score there if that happens!!
Credit mix to boost credit score
If you are thinking about new credit, examine your history and look to see if you need to add to your "portfolio".
The new FICO product is putting more emphasis on those with a more varied credit experience meaning if you have all revolving credit you may try adding an installment loan to boost your credit score.
Maybe wrapping some of the balances of over 30% into that to whittle them down to where they should be.
If you are going for a big loan such as a mortgage or auto loan, try to keep the "shop around for the best rate" period within 30 days as that with be looked as a one big inquiry.
Late Payments to boost credit score
If late payments were putting a damper on your credit a current suggestion is to put your payments into an automatic payment plan.
Many times if you set up a separate checking account and a budget that includes all your payments you can effectively gain control of this area.
If you've had a few late payments but most of your history is current payments you may try calling your lender and ask if your account can be re-aged.
You will lose some points as this shortens the history of the account but it will eliminate those marks.
So it depends on the length of the history and where the late payments are in that history. If they are very far back it doesn't matter.
Remember most creditors look back at the last two years. If the late payments are older than 6 months and you don't have anything critical that needs superior credit to qualify it may be best to leave it be.
One area to use caution but is useful to boost your credit score and bring that debt down is in the transferring of balances.
Read terms carefully. Make sure it's worth the transfer. If it's a new account your score will get dinged a bit and if the limit isn't as high as the old account your credit utilization portion of the score will be affected if you close the account. So don't.
The better rate should also be low enough to offset any transfer fees incurred. AGAIN do not close the old account that you transfer from.
If you are able to keep the old account, get a decent rate, and whack down your debt, transfers are a good way to boost your credit score.
Other Considerations to boost credit score
As you can see many small changes can make a good effect.
Boost your credit score by always looking for ways to do so.