Looking to raise your credit score in Central Iowa?
How can I raise my credit score quickly?
There are several ways to easily raise your credit score, sometimes by as much as 100 points in only 45 days! A good credit score can really go a long way in getting a great rate on a higher-dollar loan, such as a home or auto loan.
Get rid of any charge offs or liens – Charge offs and liens do not affect your credit score when older than 24 months. However, charge offs and liens within the past 24 months can very much impact your credit score. Paying the past due balance is very important!
Take care of late payments – This is easy – if you have any late payments on credit cards or other loans, be sure to pay those off, to bring yourself back to a good standing. This includes any account that is currently “past due.”
How can my credit cards impact my score?
Do not close old credit cards – Closing a credit card can hurt your credit score, since doing so effects your debt to available credit ratio. However, be aware if the account was opened within the past two years or if you have over six credit cards. The magic number of credit card accounts to have in order to maximize your score is between 3 and 5 (although having more will not significantly damage your score).
In fact, keep them active! – 15% of your credit score is determined by the age of the credit file. Use the old cards at least once every six months to avoid the account rating to change to “Inactive”. Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down right away.
Open Business Credit Cards – Most business credit cards do not report to the personal credit report unless the person pays the card late. Given that fact, any debt carried on these cards does not hurt your credit score if it is not reported.
Make sure your balances are evenly distributed.
Balances over 70% of your total credit limit on any card damage your score the most. The next level is 50% of your balance, then 30% of your balance.
In order to maximize your score without having to pay down your balances, evenly distribute your credit card balances among all of your credit cards, rather than carry a large balance on one credit card. For example, if you are carrying a $9000 balance on a credit card with a $10000 limit, and you have two other credit cards with a $3000 and $5000 limit, transfer your balances so that you have a $1500 balance on the $3000 limit card, a $2500 balance on the $5000 limit card and a $5000 balance on the $10000 limit card.
Premier Credit Union is a full-service financial institution serving Central Iowa, with branch offices in downtown Des Moines, Urbandale, West Des Moines and Ames. At Premier, our mission and reason for existing is to Make Life Better for you, our member!