Building Your Credit Score - 7 ways to improve your credit score


If you need to boost your credit score, it won't happen overnight. Credit scores take into account years of past behavior you can find on your credit report, and not just your present actions. This workshop will discuss in depth some steps you can take now to start on the path to better credit.

7 steps to raise your credit score

1. Credit card balances
2. Eliminate credit card balances.
3. Leave old debt on your report.
4. Use your calendar.
5. Pay bills on time.
6. Don't hint at risk.
7. Don't obsess.

1) Credit card balances

a. Revolving Credit-How much do you have?
b. What is the 30% or > rule?
c. Dealing with balances
d. Multiple credit balances and their impact
e. Strategies for doubling up on payments

2) Strategies for eliminating card balances

a. The impact of numerous small card balances
b. How some strategies can boost your score
c. Single card rule
d. Strategies for the Big Pay-off

3) Leave old debt on your report

a. Is old debt bad?
b. What does paying off a home or card mean on your credit report?
c. How many years traditionally do negative items remain on your credit report?
d. What is good debt and how can you use it to your advantage?

4) Use your calendar

a. Rate shopping
b. Multiple applications for credit
c. Scoring functions that allow for multiple applications
d. What is a FICO score?
e. When does your FICO change after purchases
f. How some new software used by credit agencies affect you FICO score after purchases?

5) Pay bills on time-why is this important.

a. Effects on planning new purchases
b. Plain-vanilla one-time payments
c. Late library books
d. Savings accounts and your credit score

6) Don't hint at risk

a. Missing payments
b. Paying less
c. Charging more
d. Cash advances

7) Don't obsess

a. Regularly check your report
b. Focus only when you need credit
c. Check before big purchases
d. What your score says to lending institutions
e. What happens if you are denied credit?
f. Is there a difference between Equifax, Experian and TransUnion
g. What is the cost for checking? Frequency?
h. Where can you check your score?