How To Make Credit Score Work For You

To earn a higher credit score, keep revolving account balances low. Reducing the amount of debt you're carrying is one of the best ways to improve your credit score. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.

Don't sign a debt settlement contract until you know what impact it is going to have on your credit score. Some agreements cause less damage to your credit score than others, and each should be considered before making an arrangement with a creditor.

If you need to rebuild your credit, you need to start establishing a history of responsible borrowing. Prepaid credit cards are great for this since you can get improved with a bad credit score, and there's no way to rack up debt and late fees. This will help you prove to lenders that you can be responsible, and are creditworthy

One of the easiest ways to keep your credit score high is to simply pay your monthly bills on time. Use online billing to ensure you never forget a payment. There are some methods you can use to do this. You can set them up on your banking portal and have the reminders sent to you in your email. Many creditors also send payment reminders via text message.

Investigate debt consolidation programs to see if their services can help you improve your credit rating. This can give you a very good shot at eliminating your debt and fixing your credit quickly. Consolidating your debts into one account can help you because you will only have one payment to deal with each month. Make sure you know the specific details of any consolidation plan you check to determine if it is the best one for you.