Improve Your Credit Score
Because every borrowers credit score is a reflection of his or her unique credit profile, no one can tell you how much your score will be affected if you cancel an account or payoff a debt or delinquent account. We do know that there are general things you can do to improve your credit profile. Here are some of the factors that can affect your credit scores:
- Make Timely Payments. Making payments in a timely manner is one of the best ways to increase your credit score. Delinquent and late payments on any account will decrease your scores dramatically.
- Number of Open Accounts. The number of open, active accounts such as credit cards, lines of credit and installment loans will affect your score.
- How You Use Available Credit. The amount of outstanding balances you have on your accounts will affect your score. The lower amount that you have outstanding, the higher your score will typically be.
- Do Not Apply for Credit You Don’t Need. Every time you apply for credit, the lender will pull your credit from one or more of the three credit bureaus. These inquiries usually stay on your report for up to 90 days. Every inquiry indicates that you are trying to increase the credit available to you. Numerous inquiries can negatively affect your score and cause future creditors to be hesitant on granting more credit to you.
