Compare Listings

Raising your credit score

*NOTE – This article was originally written in August of 2006 for the newsletter.

According to myfico.com, “in a given three-month time period, only about one in four people has a 20-point change in their credit score.” Most credit experts agree that there is no such thing as a quick fix for bad credit. The best strategy is to manage credit responsibly over time. Here are some tips for raising credit scores:

  • Pay your bills on time – Late payments, collections, etc., can have a major impact on a credit score.
  • Get current and stay current on your payments – A higher score will be reflected when bills are paid on time over a longer period of time.
  • Keep credit card and other revolving lines of credit low – Keeping the balances on credit cards and revolving lines under 50% of the balance can give a score a big boost.
  • Pay off debt, don’t move it around – If debt can’t be paid off or paid down, don’t consolidate it onto one account where the balance is close to or at the limit. This can have a negative impact on your credit score. Keep a balance of 50% or less of the limit to keep credit scores higher.
  • Closing an account doesn’t make it go away – Even though an account is closed, the payment history of that account will still report for years. The more time between the last late payment and when a credit report is run, the less it affects the score.

*Thanks to Alysa McLaughlin of Doering Mortgage on putting together this article. Give her a call at (636) 734-8396 or visit her on the web at loanmomma.net.

img

Matt Kastner

Matt Kastner is an Investment Real Estate Consultant at St. Louis Real Estate Society in St. Louis, Missouri. He is also develops properties on the side through Threshold Properties. When he isn’t representing investors in the purchase or sale of multifamily properties, rehabs, foreclosures and other income producing properties, he is often taking on rehab projects himself. He lives in South St. Louis and has been in the real estate business since 2004.

Related posts

What happens when you walk away from your mortgage?

If you have ever found yourself struggling to pay the mortgage or know someone who has, the...

Continue reading
Matt Kastner
by Matt Kastner

1 Million Foreclosures Delayed Until 2012?

I'd love to stick my head in the sand on this, but the reality is that the negatives of this move...

Continue reading
Matt Kastner
by Matt Kastner

Top Ten tax tips for home sellers (from the IRS)

Courtesy of the friendly neighborhood tax collecting organization we all love (you love the IRS...

Continue reading
Matt Kastner
by Matt Kastner

Join The Discussion