Improve Credit Scores an Extra 20-50 Points

Need to improve credit scores quick? Maybe you want to make a credit purchase in the next couple of months and want to get a better rate? If so, this article is for you. Use these two simple strategies to give your credit score a quick boost.

Lower your credit card debt ratio. First, you'll want to lower your credit card debt ratio. If you have credit cards use this strategy. Your goal is to lower the revolving credit available to you. If you owe $ 2,000 but can borrow up to $ 16,000 overall your credit card debt ratio would be around 12.5%.

You should pay off enough debt to get under 10%. You'll see your score pick up fast. According to credit.com you could gain 50 or more points right off the bat! That is too cool, huh? This also works in another way. You could get your credit card companies to increase your credit limits to lower your revolving credit by increasing your overall credit line, get it?

In the example above if you could get the creditors to increase your combined credit limit to $ 20,000 you'd be at around 10% (This is only a tool. I NEVER advocate increasing credit limits if you have spending issues that will lead to increased debt ).

Stop using cards. Second, you'll want to stop using your credit cards. You shouldn't really be using credit cards to begin with but that is for another time! That is, unless you use the card as a tool and pay off your balance every month. I regress. Even if you pay off your monthly balances there's a chance your lender may pull your credit score the day before your payments post. This would show a higher revolving credit percentage. In the month before applying for a loan stick to paying with cash.

Use these two strategies a few months before applying for credit. You'll jump-start and improve credit scores quick. This will likely get you a better interest rate. Remember: do your own research and good luck!

Source by Jan Petreczko

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