Wednesday, May 26, 2010

How to increase credit score?

I paid off my credit card debt of 1500 i accrued during college. BTW, just graduated a month ago. It was the first thing i did. However, I was also told that i should continue to use my credit card. Can I just pay it off online every week to make sure that i have it paid off. Can%26#039;t i just transfer online from my account to my credit card account?

I%26#039;m also a bit confused, because i paid cash for my car. SO... i%26#039;m technically being punished for not putting up with creditors leeching money off of me per month?

Sorry I%26#039;m naive and dumb regarding my personal finances.

How to increase credit score?

From what you have provided:

-Paying off any loan that you have accrued is a plus.

-Paying everything off every week will only show creditors you%26#039;re not using the credit card. It%26#039;s best if you paid at the end of the month, or whenever the credit card company reports your information.

-With purchasing a car: if you wanted to build credit and had enough to pay off the car, then i suggest financing everything as much as possible and pay it off after 6 months. The bigger the loan, the more likely they will think you%26#039;re credit worthy when you really need to negotiate.

Other than that, there%26#039;s a lot of information online and they%26#039;re easy to understand. Keep in mind that there will be a change from FICO to VantageScore. Nothing too different other than the change in the looppole of the authorized user and the grading system; FICO is like the SAT and VantageScore is like high school grading [A-F]

How to increase credit score?

There are a few things you could do to increase or boost your credit score or credit rating. Consider the following,

a). make your payments on time,

b). use under 30% of your available credit at all times. That is, for a credit card with credit limit of $1,500 try not to use more than $450. In other words, always have an available credit of at least $1,050 on a credit card of $1,500 credit line.

Do these for each of your credit cards.

c). the higher your credit limit the better it is for your credit score. Having a credit card with a limit of $10,000 as long as you don%26#039;t chard more than 30% at any given time is better than having a credit card of $2,000.

d). you also want to keep your credit cards and credit accounts in good standing, the longer you have an account the better it is for your credit score.

You can find more free information at

Hope this helps!

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