6 Smart Moves to Boost Your Credit Score

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Credit Moves to make
Cassandra Hubbart, DailyFinance
If you think your credit score doesn't matter too much to you because you're not planning on getting a mortgage or applying for a credit card anytime soon, think again. Credit scores affect more aspects of our lives than you may realize (just ask these singles). That's why it's important to keep your score as high as possible.

Paying your bills on time and staying well below your credit limits are the best ways to build and maintain good credit. Together they account for more than half of your overall credit score.

A healthy payment history is the biggest contributor to your credit score, accounting for 35 percent of the total. Miss even a single deadline, and you could see your credit score drop as much as 100 points or more. To avoid those dreaded "overdue" notices and the credit blemishes they bring, set up automatic payments for any regular bills so that your lenders get the check on time, every single time.

Another 30 percent of your credit score is based on the amount of debt you carry, as measured against the amount of available credit you have -- otherwise known as your credit utilization ratio. It's a good idea to keep your outstanding balances to less than 25 percent of the money available to you to spend. If you are not able to pay down your balances ASAP, you can go at the problem from a different angle by calling your lenders and asking them to raise your credit limit.

But beyond these basic rules of smart credit management, there are some lesser-known strategies that can help you boost your score.


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Hirsi Barre

Friendfeed is a perfect socialnetwork.

October 12 2013 at 12:11 PM Report abuse rate up rate down Reply
John James

I work in the dispute department for one of the credit bureaus. Visit my site www.creditpreparation.com. I break down and explain alot about credit and what you can do to help yourself. You can also email me directly if you have questions.

June 08 2013 at 11:17 PM Report abuse rate up rate down Reply
jgonefishing

Great facts...lots to learn.Love it !!!!

April 22 2013 at 1:42 PM Report abuse rate up rate down Reply
cslinz62

Don't move around a lot. Don't job hop. Don't sign up for a bunch of credit cards at one time. Don't buy a used car at a tote the note place. They won't turn your payment history in. Don't use your credit cards at Dollar Stores. Yeah, I'd say he left out a few others.

April 09 2013 at 3:23 AM Report abuse rate up rate down Reply
1 reply to cslinz62's comment
jennyandrodney20

Why is it bad to use your credit card at a dollar store?

April 30 2013 at 10:27 PM Report abuse rate up rate down Reply
joehennes

Odd, they left out one of the best and most obvious ways to better your credit score. Take out a loan. Don\'t spend it. Put it in a separate savings account and make regular payments on the loan like clockwork, set it up to be automatic if you can so you don\'t even have a chance to mess it up. Costs almost nothing and gives you a good paynent history.

April 08 2013 at 4:14 PM Report abuse rate up rate down Reply