A higher “credit score” can mean lower interest rates and better deals on everything from credit cards to a new car, insurance, or a home. You also can expect faster credit approval and higher credit limits. How can you raise your score?
Check your credit. Get your credit report from Equifax (800-685-1111), Experian (888-397-3742), or Trans Union (800-888-4213), the three major agencies. If there are any errors, you may need to work with all three to get them cleared up.
Don’t consolidate credit cards and transfer balances. When you make such moves, you obliterate your credit history from the relinquished cards. That can be a mistake, because your credit history is one of the biggest factors in improving your score.
Pay down or pay off existing debt. Reducing your debt will increase your score, especially if you keep individual card balances to under 30 percent of the card limits.
Keep old accounts. Instead of closing out old accounts, leave them be. As the ratio of your outstanding debt to your available credit declines, your score will rise.
