Raise Your Credit Score

If you're looking into buying a house anytime soon, then you've probably heard the word "credit score" more times than you can count. Trouble is-- not all of us have the best scores and that can mean high interest rates on loans or sometimes no loan at all. For anything you want that involves a credit score, here are a few tips to increase yours quickly!

1. Pay All Bills On Time
   Before you pay anyone, it should be yourself first. Most experts will tell you this and they are 100% right, but it should only apply once you can pay yourself AND your bills. You should never let the colors on the bills change and credit scores are a great reason to avoid this with a passion. A great way to avoid late fees is to set up automatic payments with your online bank, if they offer it. Services like this generally range from $5-10/mo and are well worth the peace of mind they bring. By the way, payment history makes up the bulk of your credit score at around 35%.
   
   
2. The 30 Percent Rule
   The rule states that you should never let your credit card balance go over 30% of the limit and also about 30% of your credit score depends on how much credit you have access to versus how much of a balance you actually have on it. Personally, I never use credit cards but for those of us that do-- it's important to remember that these should only be used for money we already have. If not, make sure you pay your debts are all paid off on time. Don't ever pay the minimum, either!
   
   
3. Don't Make Your Credit Cards History
   Credit history makes up about 15% of your credit score, and the longer you have a credit account, the better your score will be. Always keep a credit history of at least a few years!
   
   
4. Quality, Not Quanitity
   Having a few credit cards with a good history and no late payments is golden compared to a bunch of credit cards with no history. The latter indicates that you are in need of credit and are headed down a treacherous path of debt consolidation. Also, pay attention to how many times your credit report is requested. Around 10% of your credit score depends on this very factor and less is better in this case.
   
   
5. Secured Credit = Good
   Loans such as mortgages, car loans, etc. are considered secured because they involve a good source of collateral (usually the object that you're taking the loan out for). Unsecured loans like credit card debts, student loans, etc. are like poison because they involve a variable collateral (your income). Make sure you get rid of unsecured loans as soon as possible. The type of credit you use also makes up about 10% of your credit score.

Use these tips and you'll be sure to increase your credit score and banks will love you. Good luck!