Tips for Improving Credit Scores
There a several steps you can take towards improving your credit score. Paying your bills on time is one way to avoid a bad credit score. Late payments can have a significant negative effect on your credit.
Another step towards improved credit is reducing account balances to under 50 percent of your available credit. For example, if your credit card has a limit of $1,500, you should try to keep the amount you owe below $750.
Checking your credit reports frequently is a good way to monitor your credit and learn which areas of your financial profile need to be improved. A TrueCredit 3-in-1 Credit Report includes your credit history information from all three national credit agencies, in one easy-to-read document.
Three agencies, TransUnion, Equifax and Experian, keep and maintain unique credit reports for nearly 260 million Americans. Each agency has different methods collecting credit information. It is not surprising that, on average, a person's score can vary up to 40 points between each agency. Improving your credit score should start with spotting and correcting any discrepancies between the three agencies. The difference in credit scores could mean higher interest rates, or even a denial of credit. View your 3-in-1 Credit Report, and take the first step towards improving credit.
Closing old or idle accounts can have positive and negative results. While it may help you avoid unnecessary fees and protect you from identity theft, closing these accounts may actually have a negative effect on your score. Closing the oldest account on your credit report can make your credit history appear shorter than it actually is. It is generally good practice to keep four to six accounts open to show signs of active and responsible credit.
For those working on improving their credit, you should be aware that you can cancel accounts with an active balance. Creditors will close the account to new charges and allow you to continue paying on the balance each month. For more information on closing old accounts, please follow this link: Closing old accounts and improving your credit.
Visit the TrueCredit Credit Learning Center to learn more about improving your credit. Or click here to view your credit report now.
| 
