Credit Score Improvement

Even when you think you've reached excellent heights it doesn't hurt to know these little things you can do for credit score improvement.

The first thing you need to do is get a copy of your report. Check over this for errors and dispute anything that is incorrect. Also, any negative reports over seven years old (other than bankruptcy which lasts ten) should have fallen off your report.

Paying down any balances on your cards will really help your situation. As a general goal you should try and keep your balance below 30% of the credit limit. A factor in determining your credit score is how much of your credit you are using versus how much is available to you. The less you use, and the more available to you, the better.

Another factor is the age of your accounts. The older an account the better. If you have an old account you haven't used lately bring that out and use it lightly, remembering to try and keep below 30% of your limit.

If you already have plenty of cards you don't need to get more for credit score improvement. Instead look into getting an installment loan. Common uses for this are a car loan, tuition, or home improvement. On these installment payments, or on your cards, the best thing you can do for yourself is make sure that you are never making late payments. Paying everything on time does wonders for your financial history!

If you made one late payment a while back and since then have always been on time you can write a letter to the company asking for a "goodwill adjustment". This is where, because of your loyal service, and consistent history of timely payments they basically excuse that one late incident.

Significant jumps upward take time and a history of on time payments on different kinds of accounts, but these tips can get you on the fast track to credit score improvement.

For more information on what all those numbers mean and acceptable credit scores for mortgages check out the Credit Score Scale.