Everyone always ask me what they can do to raise their credit score. Here are three ways to raise your credit score and keep it high.
First, keep credit card and other revolving balances low compared to your limits. So, the two ways to make this happen is to pay off debt and raise your limits. This can be accomplished by calling your credit card companies and ask them to raise you limits. Also, if you have a lot of balances on a lot of cards, you can do a debt consolidation that will transfer your debt to installment and in most cases instantly raise you score.
Second, do not close credit cards. As you pay off your credit cards, leave them open. This is because the older the cards you have, the higher the credit score.
Lastly, pay your loans and credit cards on time. I cannot stress how important this is to keeping a high credit score. This is the key to building good credit over the long run.
Chris,
ReplyDeleteThank you for the info. I have several questions below:
1. For the first strategy, can you tell me what is the optimum balance vs limits ratio? Some people told me it was 40% yet others tell me it is as low as 25%.
2. For the second strategy, would it be beneficial if I close one, or more, of my newer credit cards? Especially if I have more than 4 credit card or revolving accounts open.
Thank you,
Christian Tan
www.linkedin.com/in/ChristianATan