Credit Score Numbers | Rules To Keeping Your Credit Score Numbers High
When looking at your credit score numbers, know that your credit scoring method is quite complex. We will go over the most important rules that you need to follow to make sure that your credit score numbers are high. There are no magic formulas that changes your credit score overnight, but these rules will help your overall credit score in the long run.
Credit Score Numbers and Keeping Them High
The first rule that is also the most important rule to keep your credit score numbers high is to never pay your bills late.
When you pay your bills late, they will show up on your credit report as 30 days late or however late you are with the payment. This is the quickest way to drop your credit score and the hardest way to bring those credit score numbers back up. If all you do is pay your bills on time, you will see your credit report say Paid as Agreed. By doing this alone, you will be sure to have at least a credit score number of 600.
If you pay your bill late by a couple of days, it may or may not show up on your credit report right away. The best thing to do is to just avoid these types of situations so that you won’t get stuck in quick sand.
The second rule you can follow to raise your credit score numbers is to keep your credit utilization low. At ReallyFreeCreditScore.com, we have been the pioneer in talking about your credit utilization and how to use it to your advantage.
Your credit utilization ratio is the amount of debt you have divided by the total amount of credit you have available. You need to look at both your individual credit cards along with an aggregate of all your accounts. The general rule of thumb is to keep your credit utilization ratio under 30% for both your individual lines of credit and the total of all your credit. It is ok to occasionally go up to 70% but anything higher and for long periods of time will hurt your credit score.
One quick way to raise your credit utilization ratio is to raise your credit limit. You can request a credit limit increase from your creditors but be careful because you may have a hard pull done on your credit repot. Usually it is worth the ding that you take on your credit report if you can get a raise on your credit limit right away. If you cannot do that then you must decrease the amount of debt you have on your lines of credit.