Improving your credit score, to most people, seems to be the long rigorous process that takes years to actually do anything about. This for the most part is actually not true. Now don’t get me wrong, if you have bad credit from not paying on time or letting debts go to collections then you do have a lot of work ahead of you and may even need to check out a credit repair service. However if your credit score range is within the mid to high 600’s, there are actually a few simple tips you can do you raise your score almost instantly.
The first thing you can do to improve your credit ranking, although it seems almost counter intuitive, is open up some new lines of credit. The more credit you have the more credit lenders often want to offer you. The reason for this is that the credit bureaus look at something called your debt to credit ratio when determining your credit score. The logic behind is that if you are not using all your available credit, you are more attractive to potential lenders as you already have a diversified means of paying back on loans or debts. This means even without paying anything on your existing lines of credit you can actually raise you score by opening up new lines of credit. Now the key with this is to not spend any money from the new credit lines, and be sure to open credit accounts that don’t have any fees associated with them.
The second thing you can do to raise your score is to pay down what you owe. Now, as you read above the ratio of debt to credit plays a decent role in determining your credit score. The important thing to take away is that it is a ratio or percentage. This means that having $100 debt on a $1000 credit line is actually better than having a $1000 debt on a $5000 credit line. This means that if you have credit cards with relatively low lines of credit, paying down the balance for a month will actually put you in a better standing to open up a larger line of credit.
Be sure to read more about credit and loans over at Bad Credit Loans Guaranteed Approval.