Improve Your Credit Score? Yes You Can.

Credit reports and scores are used for more than just getting a loan, credit card, or mortgage. There are three major companies that track your credit history Transunion, Equifax, and Experian. Many employers look at a credit report to see how responsible the job applicant is, even if the job they’re applying for doesn’t have anything to do with finance.

You can improve your credit score. It won’t happen overnight but it will happen. Here are a few tips.

Keep credit card accounts open
One of the factors that lenders look at and that impacts your credit score is how much of your available credit line you’ve actually used. Someone who has a credit line of $10,000 but only has $1,000 available will receive a lower score than someone else who has a credit line of $5,000 but has $4,000 available. Keep credit card or revolving personal loan accounts open, especially if the account has been paid off.

Apply for no more than one or two credit cards or loans at a time
Each time you apply for credit and a lender reviews your report it’s notated in the credit report. Lots of inquiries will be interpreted to mean that you are short on cash. Applying online may count if you provide your personal information such as social security number. Review the fees, rewards, membership charges, and interest rates for each card and apply for the card that fits your needs the best first.

Use credit as little as possible.
Credit cards are used for convenience, emergencies, and major purchases but shouldn’t be used for purchases that you know you won’t have the money for when the bill comes due. If at all possible use the card as little as possible while you pay down the balance every month. If you must use a credit card get a secured card or prepaid card

Work with your creditors
It happens to the best of us. There may come a time when you are over your head in debt and just can’t make the payments. Perhaps you’ve lost your job, had major medical expenses or are divorced. Don’t ignore the situation it won’t go away. Contact your creditors, explain the situation and see if you can get some extra time to pay, lower interest rates, or fees waived.

A strong credit history and favorable credit score is important for a strong financial future.