Simple Ways to Improve Your Credit Score

Basic Factors That Affect Your Credit Score
Pay down balances, increase limits
Transfer debt to other accounts
Pay monthly payments on-time
Build new credit
Build old credit, or aged credit
Use a variety of types of credit
Repair mistakes, or hire a pro
Paying off all balances will cause scores to plummet
Tips Improve Your Credit Score 740-800 Credit Scores are Possible!

Basic Factors That Affect Your Credit Score 49% of Americans do not understand that credit scores measure credit risk , and 45% incorrectly think that increasing income will increase credit scores. 2005 survey results by Consumer Federation of America and Fair Isaac Corporation

Creditors report pay history to bureaus
Pay debts on-time
Get mistakes corrected
Credit Repair
No History? Get started by opening an account.
Pay History: Debt Re-Payment History

Divide balance by Credit limit = ratio
Higher than 25% is bad bad bad!
Missed payments cause credit limits to drop
Paying off balances cause scores to drop
Amount Owed: Balance-to-Credit-Limit Ratio

Credit Limit: $1,000.00
Balance: $500.00
Basic Factors That Affect Your Credit Score Amount Owed: Balance-to-Credit-Limit Ratio $500.00 ------------ = 50% Ratio $1,000.00 (too high!) Ideal: 5% to 25% Balance-to-Credit-Limit-Ratio

Divide balance by Credit limit = ratio
Higher than 25% is bad bad bad!
Missed payments cause credit limits to drop
Paying off balances cause scores to drop
Amount Owed: Balance-to-Credit-Limit Ratio

The older the better on open accounts
Old accounts with no balance are best
Go beg Mom n Dad to add you to their accounts
Clowns ruin everything
Credit Age: Age of Each Account

Variety is best
No need to obtain all types
Avoid high risk lenders
Bookies can hurt you
Credit Types: Installment, Revolving, Optional, Mortgage, etc.

New accounts are good when low balance
New collections are bad all the time
High balances are bad
Excessive inquiries make you look desperate (or ugly)
New Credit: It Shows Continued Participation

Pay down balances, increase limits
Transfer debt to other accounts
Pay monthly payments on-time
Build new credit
Build old credit, or aged credit
Use a variety of types of credit
Repair mistakes, or hire a pro
Paying off all balances will cause scores to plummet
Basic Factors That Affect Your Credit Score Thanks for Watching & Good Luck! Credit Scores of 740 to 800 are Possible! Tips Improve Your Credit Score

Simple Ways to Improve Your Credit Score

by Cram4You on Jan 05, 2012

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Simple Ways to Improve Your Credit Score — Presentation Transcript