Credit Tips
DO's and DON'T's for IMPROVING YOUR FICO® CREDIT SCORE
It's important to understand that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. Here are some basic tips to help you get started when it comes to fixing bad credit:
DO: Pay your bills on time.
Delinquent payments and collections have a major negative impact on your FICO score.
- If you have missed payments, get current and stay current.
The longer you pay your bills on time, the more your credit score will improve.
- Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years.
- If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor at LifeLine.
This may not improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
DO: Keep balances low on credit cards and other "revolving credit".
High outstanding debt can affect a credit score.
DO: Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
DON'T: Close unused credit cards as a short-term strategy to raise your score.
A lack of older credit accounts can hurt your credit score.
DON'T: Open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower your credit score due to multiple credit inquiries.
Improving your credit can be a daunting task, but you don't have to go it alone. Let us toss you a lifeline and help you get your bad credit back on track. Contact us today and get started with a comprehensive credit repair plan that will take the guesswork out of your credit repair concerns.