Big changes are coming. The bulk of the new Credit CARD Act provisions go into effect in February, which may change the way many of us use credit.
While some consumers will benefit, others may find it difficult to access credit at all. In fact, a few credit card companies have already begun cutting off customers without explanation, just a rude surprise at the register.
Instead of being at the mercy of changes to laws and credit card company policies, take action to improve your credit score now so you don’t have to worry about what may come. Here are some tips to get you started:
How to Improve Your Credit Score in 7 Steps
1) Pay your bills on time every month.
The single most important thing you can do for your credit score is to pay at least the minimum payment (the amount you’re required to pay) for each bill on time every month.
2) If you have past due bills, pay up and stay current.
If you’ve made some mistakes with your credit, you’ll need to settle up to demonstrate that you’re able to pay your debt.
3) Pay down your credit cards.
Not sure where to start? A good rule of thumb is to pay down the credit card with the highest interest rate first (while also paying at least the minimum payment on other cards). When you’ve paid down that balance, move on to the card with the next highest interest rate, and so on.
4) Spread yourself thin.
If you have multiple credit cards, try to spread your charges across them and keep your balances low. Shoot for using less than 30 percent of each card’s credit limit. If you don’t have several credit cards, it’s not necessary (or recommended) to open accounts just to spread out your debt.
5) Don’t close accounts you no longer use.
Closing accounts can hurt your credit score because it lowers the total amount of credit available to you. Instead, dust off those old cards and use them at least once a month on smaller purchases, like gas or take-out. Each month you pay your bill on time, the credit card company will report you as a-okay.
6) Don’t open new accounts you don’t need.
And try not to open too many accounts in a short period of time.
7) Check your credit report regularly and dispute inaccuracies.
Start by getting your free credit report from Quizzle every six months. Learn what’s on your credit report and how things are reported. If you see something that doesn’t look right, dispute it with the credit bureau. In Quizzle, it’s as simple as clicking the “Dispute this with Experian” button next to the account in question.
Lastly, be patient. Improving your credit score can take time. Just like a diet, there are no quick fixes. Be responsible with your credit, pay your bills on time and use your head — pretty soon, you’ll be reaping the rewards of good credit.
[Photo credit: http://www.flickr.com/photos/travistruman/ / CC BY-NC-ND 2.0]
November 18th, 2009 at 12:35 am
THIS WAS THE FIRST TIME IVE DONE THIS AND IT WAS SOOOO EASY! THANK YOU AND MY SCORE WAS NOT BAD AT ALL GOT A ( B ) WE LIKED YOUR SIGHT AND ALL THE FREE INFO AGAIN THANKS
November 21st, 2009 at 11:30 pm
WOW!!!! This web site is AWESOME!!!!! Everything I need all conveniently located in one spot. The site is so easy to navigate. I will recommend this site to everyone.
December 31st, 2009 at 12:44 pm
FINALLY, A ONLINE SITE THAT DIDN’T JUST BURN UP MY TIME WITH A LOT OF USELESS INFO. EASY SETUP AND GREAT SOURCE OF INFOMATION AT A TIME WHEN KNOWLEDGE IS AT A PREMIUM. THANK YOU. STEVE
January 3rd, 2010 at 10:39 pm
THANK YOU!!!!! And FREE. I can’t stand the other sites that want to charge you for YOUR own credit score. You guys are GREAT!! Will recommend. Again many THANKS….
January 15th, 2010 at 7:08 pm
Thanks so much for the USEFULL information. It seems almost a crime that banks and credit card companies are allowed to give consumers a “score” without any information on how these scores are generated. Its like playing a game without knowing all of the rules.
January 16th, 2010 at 12:43 am
This is one site that I will be using every six months to help me get my credit back on track. With my score being so low, I really needed this help. Thank you so much Quizzle.
January 21st, 2010 at 3:39 pm
This is an AWESOME website. Not only is it educational, it’s easy and the reports are quite understandable. I appreciate the tips as well for bettering your credit. Thank you QUIZZLE.
January 27th, 2010 at 5:47 am
Simply Speechless. This is a awsome web site. Your tips I will implement today thank you so much.
January 27th, 2010 at 8:35 pm
Tip # 5 – don’t close out accounts. i disagree, i would rather close out an account, in fact i had two that were charging 25%. i closed them, paid them off. it might affect my credit rating ( when in fact it had no affect ), but thats several hundreds of dollars i don’t have to pay in interest fee’s, while the principal would barely budge.
January 28th, 2010 at 1:46 am
Quizzle Rocks! and now my credit will too.. THANK YOU!
January 28th, 2010 at 7:14 pm
I received this information off the Clark Howard Radio Show. I have visited this website three times. It is a rewarding experience.
January 30th, 2010 at 6:16 am
Great site! A remarkable amount of free information. I had access to another “free” website that told me my credit score was 677 through Transunion, but here it’s 720! What?! I’ve been working very hard to stay current on bills, pay down credit cards and never be late with a payment and here’s my reward! Thanks Quizzle! I’ll be telling my friends!