by STAFF WRITER Published June 15, 2011 Credit Unions Online
Good credit scores provide lower interest rates when borrowing, so who wouldn't want to find a way to have a higher credit score? However, if you are looking for a quick fix solution to a low credit score, you won't find false promises here. High credit scores are a valuable thing to people who have worked towards them, so it makes sense that there are not ways to cheat your way to the top of the class. You have to work hard and maintain financial discipline for more than a few weeks or months.
If you are starting out with a goal of a higher credit score, plan for the long term. Be aware of your spending weaknesses in advance and prepare how to avoid disaster 6 months down the road when your willpower might not be as strong as today.
Below are tips to help you get on the right path.
Always pay your bills on time. A budget will help make this a reality and even allow you to pay bills as soon as you receive them.
Keep balances low on credit cards. Work towards having your balance no more than 35% of the limit. Maxed out credit cards are a sign of financial stress to lenders.
Apply for new credit only when needed. Every time you apply for credit, your credit score lowers a little. Multiple applications for credit compound and can significantly lower your score.
Pay down credit card debt instead of moving to another credit card. Having more open credit cards while still owing the same amount may lower your credit score. Having too many credit cards can be another warning sign to lenders.
Staying on the right path is more difficult, so talk with your spouse, friends, or family to see if they have tips to help you stick to your goal of a solid credit score. Once you have a high credit score you will be able to realize your hard work when getting your next car or home through a reasonable interest rate.