How Can I Raise My Credit Score?

Credit scoring is a funny thing, although your score may be nothing to laugh at. The models that are used to determine credit worthiness don't always seem to make sense.

For example, if you close numerous credit accounts almost simultaneously, that will adversely affect your score.

If you open numerous credit accounts almost simultaneously, that will adversely affect your score.

Here's a strategy: pay your balances down quickly, close your accounts slowly, making sure that you leave open the oldest account. Part of your scoring is determined by the longevity of the accounts that you hold.

Also, make sure that you keep your monthly balances to no more than 20%-25% of the total amount of borrowing limits that you have available. Those seem to be the magic numbers. If you have $10,000 in limits, do not exceed $2,000-$2,500 in debts.

One last thing, build a balanced credit profile. You want to include a mortgage, an installment debt (a car or student loan), and a revolving debt (credit card or store card) for greatest stability. Stability means responsibility, which means higher scores.

In the end, the point of all this is unnecessary. You want to be debt free. Buy what you can pay for right away. All else, pay for quickly. I would rather be debt free than have an 850 score based on how I handle my affairs.

Freedom is the goal, not how you manage bondage.