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
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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!
February 13th, 2010 at 4:33 pm
Quizzle.com is an amazing site it is outstanding!!!!!
February 15th, 2010 at 7:27 am
This site is a breath of fresh air. They give you all this information with NO gimmicks! This site is a good start to give you a picture of what is going on with your credit and offer tools if you choose to HELP you fix or just get back on track. Keep in mind though that you ONLY get your credit score from just one source and for whatever reason all 3 can be different. Best site ever to help folks like me.
Thank you so much
February 15th, 2010 at 8:01 am
Just got my report from 2 of the 3 companies and am very frustrated. Reports of one missed payment in 2003 and 2005 are still major reasons for my low score (500s). That’s over 5 years ago!! This makes no sense to me. Current high debt ratio is solely student loan balance. I can’t get a decent job without a degree and can’t get a degree without loans due to the extremely high cost of a higher education. The loans are in deferment until graduation. It’s a vicious circle.
February 15th, 2010 at 11:52 am
I agree with Rick on no. 5. Having too much credit available too you can hurt your credit score. It’s called revolving credit. It especially hurts if your revolving credit is higher than your income. I would suggest closing store credit cards that you don’t need. You can use your MC an VISA anywhere, no need for specific store credit cards that have higher interest rates anyway.
February 15th, 2010 at 1:11 pm
I wish I would have known that closing my credit cards would hurt me more than help.
After I paid them off, I closed them, and now it will be a couple more years before THAT goes away.
February 15th, 2010 at 7:40 pm
I simply want to say THANK YOU. Having access to this information – “FREE” has set me on a positive move forward. Once again, THANK YOU!
February 15th, 2010 at 8:10 pm
I can’t wait to get my score. Have a few minor blemishes that I know of but
all that occoured during and post divorce. I have closed several cards over the last few years to “simplify” and that is worth the mental relief not to keep track of cards I rarely use.
February 15th, 2010 at 10:21 pm
And don’t use free credit report dot com as part of inquiriry your bank account numbers are needed for free credit report. However it is so you can be signed up for a credit monitoring service. The bank account numbers are needed to charge your acct on a monthly basis without your knowledge. About $12 to $15 per month. Nothing is free!!!
February 16th, 2010 at 1:12 am
Several people have problems with #5. Which is correct?
To close accounts not used, or keep them open? Or both?
February 16th, 2010 at 10:24 am
@Bill – Great question! Closing an account can hurt your credit score. By taking away available credit, you hurt your credit utilization ratio, which will negatively impact your credit score.
However, with the new Credit CARD Act going into effect on Feb. 22, many banks and creditors are beginning to charge fees – whether they be general annual fees or fees for lack of use. Is it worth it to keep a card open that you don’t use when you’re being charged money for it? That’s a decision you have to make. But generally speaking, closing an account *will* negatively impact your credit score.
February 20th, 2010 at 11:31 am
Quizzle is a great website that allows me to get the most complete layout of my financial picture. I am in the process of looking for a home and I am so glad I found out about quizzle before closing. I now know that I earned a B and I am confident that I am purchasing a home that I can afford.
February 23rd, 2010 at 10:07 pm
I LOVE IT! SERIOUSLY I HAVE READ ALL THE RESPONSE AND ITS ALL GOOD AND TRUE..
February 25th, 2010 at 2:44 am
QUIZZLE YOUR AWESOME! GREAT TOOLS, GREAT ADVICE, AND FREE TOO! WTG! LUV IT, LUV IT, LUV IT!!
February 25th, 2010 at 5:45 pm
My credit score makes no sense at all. Credit cards closed were due to deceptive practice and closed immediately and two were closed by the issuing bank due to compromised information by a seller. A new one was was opened automatically by the bank I don’t charge much as I like to know my cash flow at all times which seems to me be smart since I am retired, have more than enough emergency savings and adequate investments.
If a little charging is necessary to improve one’s credit score, people are being encouraged to get right back where they are now -in tons of debt with no savings.
March 4th, 2010 at 4:43 pm
This place is amazing. Now I know what must be done so I can get my First House. Keep up the Great Work!!!!!!!
March 7th, 2010 at 3:06 pm
Great site ! If you have any questions about credit, you can e-mail Quizzle and get a reply. I wanted to know the FTC address, it was sent to me. My credit situation was complex, however for a small retainer found a law firm that will also assist getting your credit back on track. Had a bill that was sold to a collection agency for pennies on the dollar. The law firm solved the problem.
March 11th, 2010 at 8:35 pm
My credit score makes no sense at all. Credit cards closex were due to deceptive practice and closed immediately and two were closed by the issuing bank due to compromised information by a seller. A new one was was opened automatically by the bank I don't charge much as I like to know my cash flow at all times which seems to me be smart since I am retired, have more than enough emergency savings and adequate investments.
If a little charging is neceszary to improve one's credit score, people are being encouraged to get right back where they are now -in tons of dsbt with no savings.;
March 13th, 2010 at 11:25 am
*Ken*on 3/7/2010 you said you “Had a bill that was sold to a collection agency for pennies on the dollar. The law firm solved the problem.” please what was the name of the firm- I have this very same problem and need help.