What's the best way to improve my credit?

Question

I have 4 credit cards. They all have the lowest limit on them. At first I was using them almost to the max for anything bought. When I got the Statement, paid it off in full. Then my boyfriend said don't max them out and to leave some kind of balance on them, so I did. My credit score isn't too high as of now. About 580.... I think. Well it has been about 6 months sence having the cards. I haven't had a limit increase yet on any of them. also I decided to put them all away a month ago, not because couldn't afford it, but because I think this may help myself out more if I simply don't use them. When I put them away there was a balance of aboout half of what the limit was on each, and now when the statement comes I pay 1/3 of it.
So my question is, is this a good way to help my credit, or is there another way to help. I am 28 and never had or wanted credit cards that is why I haven't had them in the past, but the older I get the more I realize that you need credit.

You never know what will happen. So that's when I decided to get some cards. I am looking for great advice here. Any suggestions would be greatly appreciated. Thank you very much!

Also i want to add that live with my fiance who owns our home and my truck is paid for. So my cards are the only thing I'll ever owe on. Any past accounts on my credit report were paid and taken care of 2 years ago. So there isn't anything there. Thanks again!!

I really appreciate the responses thus far but I wish people would read the entire question brfore answering. There is more to the question then the firsy few sentneces. Not to be rude here, just please read everything. Thanks again!

Answer 1

I see your concern here Angela. You're better off to keep doing what you've been doing.Paying them off when you get the bill, not usit the entire limit when you do use it. I understand that you've put your cards away for now. That's good. But pull them out and buy a little something with each of them. Small though, then pay it off like you do . This way there's still actilvity on them. You've never had credit untill now so it will take some time to improve it. zGood luck, and keep doing what you've been doing.

Answer 2

I have a credit rating of 803..I charge only what I can pay off each month..I don't like paying interest..If I can't pay off the card then I can't afford to charge on it.. always pay on time or preferably when you get the bill. I usually use it every 2-3 months just to keep my credit open..when you have had your cards paid off for a month or so call and ask for an increase in your limit and a decrease in your interest percentage. Chances are you will get both..I only use one card, as it is accepted everywhere..the others Dept store cards are put away and never used unless there is a sale that will give me extra % off if I use it...then sometimes I go to the credit office and pay it before I leave the store..

Answer 3

Your FICO score of 580 is pretty low, it pretty much means that some of your creditors left some bad feedback on your credit due to perhaps being late in paying at least the minimum fee.

There are several things you can do to improve your credit score, none of them will involve getting more credit and into even more debt though...

For the next 6 months to a year:

> pay your credit cards ON TIME even if it's only the minimum
> pay your utilities in full and ON TIME every month
> pay your cell phone ON TIME and in full every month
> try to reduce the cards you have to only 2, one Visa and 1 Master Card, that will give you coverage across the world if you have to travel
> once you pay off your credit cards in full, use them, but be mindful and pay them off on time and in full every month.

It also sounds like you know your score, but you don't know the details of your credit report. To be sure what's in your report you have to get a detailed report and go over it yourself. Know what the creditors know. You might be surprised what's keeping your score down, it might be something totally unrelated to your credit cards now, and it could go back 7-10 years. But you can request changes and updates if the information is wrong.

If you follow these suggestions, you will have a good credit score, perhaps in the 700s, within a year. Good Luck!

Answer 4

Pay the cards off in full. Carrying a balance does not help your credit score. Charge on the cards but don't max them out and pay in full every month.

A big part of your credit score is based on your debt to available credit limit ratio. If you were maxint out those cards, your ration was way over 50%, even if you did pay them in full every month. You don't want that ratio to be more than 30%.

A consistent on time history is the most important way to increase your score.

Answer 5

The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.

1. Re-payment history

This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.

2. Outstanding debt

The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.

3. Length of your established credit history

The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.

4. The state of your financial accounts
How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score

Answer 6

to raise credit score

1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3.To boost your score: Don't charge anything for at least 60 days before applying for a loan
4. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
6.To boost your score: Don't close unused accounts when you transfer debt.
7.To boost your score: Consider opening another credit-card account or two, or taking out a car loan or small bank loan.

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http://www.bestcreditrates.net

Answer 7

you have a low score because of your past history. it may include medical collections, credit collections, chargeoffs, and/or late payments.
You need to stay under 35% of the credit limit.
Never max out the card....EVEN IF YOU PAY THE NEXT DAY. they report your HIGH BALANCE, and it looks like you maxed out...
i recommend that you fix your past by disputing those collections and other late payments.
my information is free on the website provided in my profile

good luck