As we all know, having a solid credit score is an essential part of life in the western world and it is becoming more even important with every passing year.  A good credit score could mean the world when it comes to purchasing a home, purchasing a car, renting a home or even getting a job.  Most employers do a credit check nowadays before they hire new employees.  The U.S. government will conduct a credit check when considering an employee for security clearance.  Having a good credit score is essential, and these simple five steps will enable you boost your credit score to an A1 level.


  1. Know where you currently stand: Just like the adage goes: To get to your destination, you need to know where you are currently.  Since your credit score is computed by the items in your credit report, it is important that you know what is in your credit report.  Previously, there wasn’t a way to find out what is in your credit report without paying all three credit agencies, but with the passing of the Fair Credit Reporting Act, you are entitled to a free copy of your credit report once a year.  You can get this copy from  In addition to this, there are several services that will let you monitor your credit report as often as weekly.  A few of the popular ones are, or  Knowing where you currently stand goes a long way to the journey of improving your credit score.


  1. Pay bills On-time and Settle outstanding Negative factor: The most important factor that determines your credit score is your payment history.  Missing payments on your debt obligations leads to a significant drop in your credit score.  The good news is that you have a lot of control over this factor and once rectified, your credit score tends to take a very significant bounce.  The easiest way to makes sure you pay your bills on time is to reduce your debt obligations, increase your income and set automatic reminders to pay bills.  In addition to paying your bills on time, you should call the creditors of any negative or collection on your credit report and settle with them.  Oftentimes, the creditors are willing to accept 30%-50% of what you owe them as settlement.  “Do not give them access to your bank account.”



  1. Never max out your credit cards: Never max out any of your credit cards.  The credit bureau considers maxing out your credit card as a sign of desperation, which in turn make them believe that you might be susceptible to late payments.  Even if you have 10 cards with no balance on them and you have one card maxed out, it will negatively affect you.  You must stay under 30% balance for each credit card limit.


  1. Reduce your credit inquiries: Reduce the frequency at which you are requesting for new credit cards.  Do not fall prey to department stores that offer you a discount if you apply for a credit card with them.  Only run your credit score for absolutely necessary events.  The credit bureaus consider inquiries that are more than 2 a year as a negative factor.  They see it as a sign of desperation.



  1. Never close out old accounts that are in good standing: The length of your credit profile also have an impact on your credit score.  The older your credit profile is the better, so if you have some credit cards that you have had for a while and are in good standing, don’t close it.  Even if you don’t need the credit card any longer, you can cut it up and still keep the account active.  This factor takes time to build so it is imperative not to close old account.  Once closed, there is no getting it back.




Victor Lofinmakin

Your realtor

Tarl Anderson Properties.



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