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Tips on how to improve your credit score

January 28th, 2008

Looking for tips on how to improve your credit score?  The first is to keep the amount of debt on your credit cards low.  If your credit cards are always close to being maxed out, then your credit score is going to be adversely affected. 

If you want to get your score up at the fastest rate possible, then start paying off the credit card that is closest to its limit first.  That means that if you have a credit card that has a credit limit of $1,000 and you owe $900 on that card and if you have a second credit card that has a credit limit of $5,000 and you owe $3,000 on that card, then you should pay off the lower limit card first because you’re at 90% of you limit on that card, but only 60% of you limit on the second card.  While the total amount that you owe does matter, it’s not as important as how close to your limit you are. 

Entry Filed under: Business