Improve Your Credit Score - 4 Proven Tips

As a shopper you’ve learned the importance of establishing a good credit score with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit value will be judged by your credit rating or credit score.

A poor credit history or bad credit habits will place “black marks” on your credit report. These include things such as judgments, charged off accounts and of course back child support.

Building good spending habits will improve your credit score. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.

Here are 4 tips to help you increase your credit score:

1) Pay Your Bills On Time

Lenders only have your past payment history on which to decide the type of credit risk you present to them. How you pay off your debts now indicates to them how you will pay off future debts.

2) Use the Right Mix of Credit Cards

How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is just the right mix.

3) Pay At Least The Minimum Due

Always pay at least the minimum due payment, but never less. And remember, just paying the minimum payment means it will take you years and years to pay off that credit card.

Example: Paying off a $2,000 credit payment at 18% APR with a minimum monthly payment of 2% ($40 dollars or less) will take you 30 years to pay off the amount plus interest.

4) Review Your Credit Report Regularly

Monitor your credit report from all three major credit bureaus - Experian, TransUnion, and Equifax - on a regular basis. Check your credit profile at least annually. Review it carefully and make sure that any past mistakes or disputes have been corrected.

Also, if you notice a charge account that you know that you have not do not remember opening, contact that creditor and the credit bureaus immediately. This could be a sign that your the victim of identity theft. Request to have a fraud alert placed on your profile to protect yourself and your credit score. Identity theft is the one of the fastest growing consumer crime in America, with an estimated 1 million people victimized each year.

Establishing good credit habits early in life and you can reap the benefits that your good credit rating will provide you for the rest of your financial future.