Quick tip that ANYONE can do to raise their credit score instantly...
Credit scores are made up of a ton factors that are all added together to generate the dreaded SCORE that determines your ability to borrow money. The easiest factor to change is the ratio between your credit LIMIT and your current BALANCE on your credit card accounts. The magic number that you are shooting for is 30%. This means that if you have a credit card with a $1000 limit, then you want your balance to be $300 or less. If your balance goes over that 30% mark, your score goes down.
OK Adam, so how do I fix it???
2 ways!
1) Pay down your credit card balance below that 30% level.
OR........ The easiest way.........
2) Call for a credit limit INCREASE. You can do this once a month with most lenders. By increasing your limit, you are making the ratios better. That in turn makes your credit score go up!
Congratulations!!!!!!!
Friday, February 13, 2009
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Hey, good idea with calling for a credit limit increase EXCEPT this only works if you DON'T INCREASE YOUR BALANCE. This is a critical point! If a person continues spending at the same ratio as in "higher limit means ability to spend more" then they have gained nothing. In fact, they become more in debt and have gone backwards. - Karen
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