I've made every payment on time for the past two years. However, I've taken out a lot of new credit and have used a lot of it to start a new business, which has lowered my score.
2006-06-13 16:33:51 · 8 answers · asked by michaeldsimmons 1 in Business & Finance ➔ Credit
Don't accept any new credit cards and don't close any unused credit cards. Continue to make your payments on time. The less debt you have, the higher your score goes up.
Remember: It takes time for your score to improve. There's no quick fix.
2006-06-13 16:36:33 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Your debt ratio (credit used / total credit available to you) makes up about 1/3 of you FICO score. If you want to keep a decent score, you should probably not use more than 30% of your total available credit. The quickest way to up your score would be to pay down debt, roll bad debt (i.e. credit card debt, car loans, or other short-term credit lines) into good debt (mortgage, or other long-term credit lines). You can take out a new or second mortgage on a property that you own by using the equity as collateral, use the money from the mortgage to pay off bad debt, which will raise your score significantly. Then, once you have a good score, refinance the mortgage at a better rate. You will still have the same ammount of debt -- perhaps even a little more -- but your score could jump a hundred points or so in about 6 weeks.
BUT, after you get the mortgage, close down your newer cards and lines of credit, as about 15% of your FICO score is related to the length of time that you have had the credit line. Though this will raise your credit outstanding ratio, your score will also be artifically low if you have too much credit available, because your credit history will show (and will continue to show, for the next 7 years) that you have used high proportions of your available credit in the past.
And definately divorce yourself from your business. A business can have its own credit that doesn't all need to be refelected in your personal score.
2006-06-14 00:06:27 · answer #2 · answered by what? 6 · 0⤊ 0⤋
Credit is a look at the past and a prediction about the future.
You can't 'quickly' improve your credit score. It's a gradual process. You take small loans to start with, make payments on time, and convince lenders that you are a good risk.
Taking out a lot of new credit in a short period of time has got to be frightening to creditors. As you make payments on all that new debt, your score will go back up - slowly.
2006-06-13 23:37:47 · answer #3 · answered by Stuart 7 · 0⤊ 0⤋
Pay your credit down (not always very easy, is it?). Seriously, if your minimum payment is $50, pay $75. Hell, pay $51. Paying more than the minimum on a credit card is gold in the eyes of lenders. Also, QUIT SPENDING! Don't pay any credit cards off though unless you took a cash advance. In that case, get rid of the high interest rate NOW, by paying it off!
2006-06-14 00:37:39 · answer #4 · answered by matticus finch 2 · 0⤊ 0⤋
Theres no way to QUICKLY improve your credit, but if you havent run it into the ground if you make your payments on time and pay above the minimum it should even out as soon as it can
2006-06-13 23:35:25 · answer #5 · answered by axnewspaperxtragedy 2 · 0⤊ 0⤋
Pay your bills in time. Never spend all money that you have on your credit line.
2006-06-13 23:40:02 · answer #6 · answered by kiku 1 · 0⤊ 0⤋
every time a creditor checks your credit your credit scores will drop.
2006-06-13 23:38:03 · answer #7 · answered by Starbright 3 · 0⤊ 0⤋
pay the bills
2006-06-13 23:37:13 · answer #8 · answered by loveableladee1 2 · 0⤊ 0⤋