Tips to Get the Highest Credit Score

When it comes to earning your highest credit score, there are numerous resources online that you can utilize, and they can literally change your financial future for the better. When you follow the steps below, you’ll be sure to increase both your rating and credit limits in no time.

Be sure to be on time with all your monthly payments. While you’re already likely aware of this tip, nearly 40% of your credit score depends upon your consistency with paying your bills. This shows lenders that you’re trustworthy, which greatly lowers their risk when increasing your credit limit. For those who might not have perfect credit, this step alone can be a huge help in rebuilding your reputation (and credit rating).

Another key is to regularly get a copy of your credit report to be sure that there aren’t any mistakes in your file. You’re entitled to a free report from each of the three credit reporting agencies every calendar year, so be sure to use this option to your advantage so that your report remains free from error. In case you do find error(s), we’ve listed the three agencies and their website addresses below:

TransUnion: www.tuc.com
Equifax: www.equifax.com
Experian: www.experian.com

Be sure to stay ahead of your expenses and any existing credit card debt as well. While credit cards help you to establish an excellent rating, you don’t want to max them out, since owing anything over 25% of your balance can actually hurt your score. To illustrate, if your limit is $10,000, be sure to stay below the $2500 mark to be safe. People often disregard this advice unknowingly when they choose to consolidate their debts onto one lower-interest card. Be open to the option of spreading your debt out over several such cards.

While it might be tempting to close older accounts which are paid off, keep them opened, since doing so will help your score in a positive way for as long as it remains open.

Another great pointer toward getting the highest credit scores is to keep your inquiries as low in number as possible. While you can check your credit as much as you want (considered a “soft” inquiry), each time you apply for credit through a business, you receive a “hard” inquiry on your file. Even setting up a new phone line can record as such an inquiry, so do your research first.

There are many steps you can take to receive the highest credit score, but these are some of the most important to be aware of. For those who have gone through bankruptcy, their credit is completely damaged for 10 years. Don’t become another statistic, it’s just not worth taking the easy way out, and it truly isn’t easy anyway. Who wants to be financially crushed for a decade?