Great Way to Raise Your Credit Scores
Your credit score has a tremendous impact on how much you pay for all kinds of things. Mortgages, car loans, credit cards, and insurance are just a few things affected by credit scores. The higher your scores, the lower your payments. If you’re looking for a way to raise your credit scores, read on.
Here’s a great way to ensure that you have the highest credit scores possible.
Managing Credit Limit
Assuming you pay your bills on time, the best way to raise your credit scores is to keep the balances on each of your credit cards below a certain percentage of your credit limit. If you keep your balance below 30% of your credit limit, that is the best, and you will have the highest scores. Keeping your balance between 30% and 50% of your credit limit, your scores will be a little bit lower. If you keep your balances between 50% and 70% of your credit limit, your scores will be even lower. And if you keep your balance above 70% of your credit limit, that is considered to be maxed out, and you will have the lowest credit scores.
Here’s an example. Let’s assume you have a credit card with a limit of $10,000. If you owe less than $3,000 on that account, your credit scores will be highest. If you owe between $3,000 and $5,000, your scores will be lower. Your scores will be even lower if you owe between $5,000 and $7,000. And your scores will be the lowest if you owe more than $7,000.
To get the highest scores, you need to keep the balances on all of your credit cards below 30% of the credit limits.
It’s important to remember that creditors (the lenders who issued you the credit cards) are under no obligation to report payments you make to the credit bureaus immediately. Some of them report right away, but many do not report immediately. So, if you are going to have your credit pulled, and you just made a payment on a credit card account to raise your credit scores, it’s best to wait a week or so to make sure the creditor has reported the payment to the credit bureaus.
We have software that tells us exactly what to do to raise your credit scores, so if you need some advice about raising your credit scores, contact us today.