shutterstock_102145555Are you looking to buy a new car or home in the near future?  Is your credit less than stellar? In today’s world banks and other financial institutions use your credit score to determine your risk factor before extending you a line of credit.  For people with poor credit this can block them from getting the loan they need. Fortunately, you can improve a less-than-stellar credit score. The following are a few effective ways for boosting credit ratings:

  • Pay down your credit card balances – A big factor in determining a person’s credit rating is how much credit you have versus how much you’re using. If you have a single credit card with a $900 balance on a $1,000 limit, it’s going to hurt your credit. Begin paying down your credit card balances and avoid using your credit cards as you do so. You should aim at having a balance that’s less than 30 percent of your total available credit.
  • Don’t close your cards – Once you’ve paid off a credit card, don’t close it. Say you have two credit cards that both have $1,000 limits. One has a $500 balance and the other has zero. You are currently using 25 percent of your credit. If you close the one with a zero balance, you will then be using 50 percent of your credit. This will actually hurt your credit score.
  • Pay your bills on time – Paying all of your bills on time and in full every month can have a very positive impact on your credit score. If you happen to be forgetful, then you may want to consider setting up automatic payments – forgetting to pay your bills will hurt your credit.
  • Don’t remove old debts from your report – If you’ve paid off a debt in the past, don’t try to have it removed from your credit report. Having debts that you paid off is a good thing because you actually paid it off – it shows that your financially responsible and will help with your credit score.
  • Check for errors on your credit report – Errors can happen when it comes to your credit report. These errors could be affecting your credit rating in a negative way. Go over your report carefully to see if there are any mistakes. If you find any errors, you can dispute them and have them removed from your credit report, thereby improving your score as a result.
  • Take advantage of being an Authorized User – Traditional credit repair can only remove items from your credit file, which can result in a moderate increase in your score.  Here at BoostMyScore.NET we have the power to rapidly add positive credit history to your credit file, fast! Being added as an authorized user to one of our tradelines will result in a significantly higher increase in your credit score than can be provided by traditional credit repair services.

Use these tips to boost your credit score. For more ways to improve your credit rating, contact Boost My Score today.