How to Raise Your Credit Score

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As the world’s economic growth slows to a trickle, many people find themselves struggling to make it. Gas prices have skyrocketed and the price of food is at all time highs. If you have bad credit, obtaining a loan can seem like an impossible task. Fear not! Here are four easy ways to raise your credit score :

1. Pay Your Bills on Time – Of all of the things you can do to raise your credit score , this is probably the easiest and most effective step. Approximately 35% of your credit score is based upon your payment history. Set up an online account with your bank and pay your bills via the internet. This takes about 10 minutes to set up and can save you at least $10 in stamps.

2. Pay Down High Balances First – Your credit score will actually decrease if you have credit balances that exceed 50% of the available balance for that card. Free up some of this available balance and you can raise your credit score .

3. Cut Up Used Cards – If you have a card that you do not use, cut it up BUT leave the account open. Your credit score is composed of numerous items including the percentage of available credit that you have versus the amount of credit that you have used. If you cancel the card, you can actually reduce your credit score. The only time you should cancel your card is if it has an annual fee.

4. Monitor, monitor, monitor – You should check your credit score at least annually. Each of the three major credit bureaus will give you one for free each year. Get your free report from Experian immediately and review it for accuracy. After four or five months get your free report from Equifax. After another five or six months, get your final free report from Transunion. This ensures that you will be able to take the necessary steps to raise your credit score .

These four steps are not difficult to accomplish. You should be able to see positive results in about six months. In addition to following the steps outlined above, visit as many personal finance blogs that you can. These sites can help you Become Debt Free .

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