Increasing your credit score is a great way to make sure your financial life is on track as often as possible. However, it’s not always easy to know what you should and should not do to raise your score as quickly as possible. We know that making payments on time and that keeping up with your debts is a great idea, but what actually improves your credit score most and fastest? Well, we have a few things that credit bureaus look for more than anything else when determining your credit score. If you are looking to improve yours, this is where you begin.
Pay your mortgage on time
Above all else, paying your mortgage on time is the most important thing you can do to improve your credit score. Nothing else is even close to as important as paying this in a timely fashion every month. While you should pay everything on time, it does stand to reason this is the most important thing to pay off at all times.
Low-Limit Credit Cards
Another great idea for paying off your debts is to pay your low limit credit cards first. These reduce your debt load fastest, and look better. If you have a credit card with a $1,000 limit and $900 of that maxed out, pay it off before you pay off a $5000 card with a $2,000 limit. It just looks like a bigger debt.
Past Due Bills
If you have anything that’s past due, late or really not helping out your total credit score, now is the time to pay that. It is not going to help your case in the least not to pay this debt as quickly as possible, so do it now. Eliminating past due marks from your credit score does help tremendously.
These are counted against your debt-to-income ratio, and they often hurt. However, if you can pay them off as quickly as possible, it does help to know you can do a lot of good. By keeping up with them, it shows bureaus that you are responsible with your finances and that you are going to make good financial decisions whenever possible.
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