Having more than 5 open revolving credit accounts can hurt your credit score. Closing extra accounts can help your credit score, but only if you do it correctly. First make sure the balance on every account is at no more than 50% of the available limit. Then, pay off and close the newest account. This will give you a more ideal number of accounts and a older average age, both good for your score.
There are three major credit repositories keeping scores. When disputing an item in your credit report, be sure to dispute it with all three credit bureaus, because reversing a negative item with one credit bureau does not improve your score with the other two.
You should obtain a free copy of your credit report from each of the 3 main credit repositories (Trans Union, Equifax, and Experian). Do this several months before applying for a loan, if you can. That way you will have enough time to fix an errors on your report and have it re-scored before your mortgage professional pulls your credit report again.
You should also check your credit report for in correct itmes and dispute them with the credit companies. This can be done by you or through a credit repair company working i your be half.
Keeping your credit card or revolving debt balances at 20-40% of your available limits is one way to raise your credit score or to keep your credit score high. If you have credit cards that are maxed out then you should work hard to pay them down so that you get to the 20-40% balance to limit threshhold. Balances compared to credit limits is one of the major factors when your credit score is being determined so really focus on trying not to max out your revolving debt.
Credit inquiries account for 10% of you total credit score. Do not shop for a mortgage, new car, and more credit cards all at the same time. Inquiries from different industries will have a larger impact on your credit score, so be sure to shop wisely.
In simplest manner, think of your credit report as a rating on how responsibly you use the plethora of borrowing opportunities available to the average consumer. Using credit responsibly means first and foremost honoring the obligations that you take on. Some people fail to realize that when a bank or institution lets you use a credit card or buy a car or home on payments you have made a personal obligation to repay in the manner that the credit contract prescribes. Being responsible also means not overusing or under using the credit opportunities that are available to you. Consumers who look at things in this manner and live by it will usually have excellent credit scores.
One of the best ways to improve your credit score is by removing your name from solicitation via [url]www.optoutprescreen.com[/url]. Creditors will no longer be able to query your credit and send you pre-approval for credit offers in the mail. Once these credit queries end, your credit scores will increase.