Credit Score: How to Raise it. Free eBook
“The Shocking True Story of How I Raised My Credit Score 165 Points in 3 Months and Saved $1,000’s In Interest”
Before we begin, here are some things you absolutely must do to optimize this process and how much of each item affects your credit score:
- Payment history is 35% – Pay your bills on time every month. Even if you have to borrow it, pay your bills! Missing payments is an absolute killer!
- Debt level is 30% – Don’t take on any unnecessary debt. My general rule of thumb is if you can’t pay cash for it, don’t buy it. (This excludes a home, college loans, etc.)
- Length of credit history 15% – Having a longer credit history is good because it gives more information about your spending habits. Remember, it’s good to leave open the accounts that you’ve had for a long time even if you don’t use them.
- Inquiries are 10% – Do not apply for new credit unless absolutely necessary. Too many inquiries shows you are looking to take on a lot of debt or you are in financial dire straits.
- Mix of credit is 10% – Having different kinds of accounts is good because it shows you have skills managing different types of credit.