Raising your credit score

Have you ever wondered how your credit score is calculated or how you can raise your credit score? It's like getting into shape, there is no quick fix to raise your score, but with time it will improve. First, make sure that there aren't any mistakes on your credit report. If there are, report them to the lender or credit reporting agency to have them corrected. Probably the best way to raise your score is to understand how it is calculated. Here is how your score is broken down:

35% payment history: Pay your bills on time!

30% amounts owed: It is best to have more credit than you need. Ideally, you should use less than 30% of your maximum credit limit.

15% length of credit history: Keep the same credit card for many years instead of opening new accounts.

10% new credit: When you apply for a loan or credit card, the inquiry shows up on your credit report. A lot of new accounts can look bad.

10% types of credit in use: It is better to have a mortgage than credit card debt.