Alexis' Boost Your Credit Score Tips

Below are simple steps to raise your credit score. How do I know these credit score tips work? Well I have tried them. It took about six months for my score to increase.

* Order a credit report to get your FICO score go to www.myfico.com. It costs $12.95

* Stop using the credit cards - I left them home in my drawer. That was a surefire way for self control for me. So much so that I forgot where I had put my American Express. (I didn’t put them all in the same place because again the temptation was too great). Recently I heard someone say to put them in your freezer! Sounds like a good idea to me.

* Pay more that the minimum - on all your credit card bill, and pay on time even if charges are in dispute. Remember , the credit card company is still looking for payment. They have not suspended your account because of the dispute.

* Keep balance at half the credit limit and below - So if your credit limit is $10,000. Try to keep your balance at $5,000. Ideally, we would like to pay if off totally.

* Don’t close accounts - this will affect your debt-to-credit ratio. Your credit ratio is critical for a higher FICO score- the lower the ratio the better your score will be. Here is how this works.

Let’s say you have five credit cards with credit limit of $10,000. You have used them and have a balance of $2000. Your debt-to-credit ratio is 20% ($2000 divided by $10,000). Let’s say you close one with a $4000 credit limit. You now have a total credit limit of $6000. Your balance is $2000. You now have a debt-to-credit ratio of 33%.

As economic conditions change I will add more relevant credit score tips.

Caveat: If you have too many credit cards this may not be good for your credit and it could be viewed negatively by potential creditors. I suggest you close recent ones with low credit limits which you have paid off.

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