Often times I get asked how do I raise my credit score, now of course the answer may not be the same for every individual circumstance. Although the basic four rules apply to assist in keeping your credit scores in their best possible. score.
Number 1 rule of thumb is to never exceed your threshold of 35% of your available credit limit. For example if you have a limit of "X" let's call "X" $ 5,000 and you want to maintain a higher score never exceed 35% of $ 5,000 and this will ensure you do not show up with high limit balances.
In this example we used $ 5,000 for "X" so the formula would be "X" x 35% or for simple math $ 5000 X 0.35 = $ 1,750. This ensures your availability of credit is always higher than your used portion of credit. This keeps red flags off of your credit report and shows responsibility of you as a credit user.
The second rule of thumb is to never carry debt for over thirty days of a billing cycle. If your payment is due on the first of the month and you have an outstanding balance you need to pay it too zero.
Do not just carry the debt over into a new billing cycle, when you do this the credit card companies report negatively on your credit report. This also reduces your amount of available credit for the month so this servers as a double whammy to your credit score.
Third rule of thumb is to always monitor your credit for inaccuracies. Over 70% of all credit reports have some erroneous type of data on them. You can monitor your credit score online through one of the very easy to use services. You're allowed 1 free credit report per year.
The disadvantage of these free reports is that they do not provide you with a credit score you need to subscribe to their credit report monitoring service, this way you can view your score to see if your in the ball park.
Credit score ranges
850 – 740 Excellent
739 – 680 Good
619 – 580 Poor
580 – 0 Bad
The fourth yet not last or least thing you can do is to protect your self by paying all of your bills on time. Sure this could have easily gone in the first place yet ALL of these tidbits are equally important and they all provide you with positive credit effects.
There are many other factors that are in and out of your control, your creditors actively posting to the credit bureaus, your mail reaching your creditor or debtor in time for monthly processing. How often you try to obtain credit and what type of credit you have.
If you are in need of fixing erroneous errors on your credit report you have the ability to handle this task your own or take control of your life by utilizing a credit restoration and repair company such as CreditTrax who are 100% in compliance with a Fair Credit Reporting Act and laws governing credit repair.
So my fifth rule of thumb is to use professionals with years of proven results. CreditTrax is the leading national credit restoration company who specializes in all areas of credit and identity recovery.