Credit means everything in today’s world. It affects a person’s ability to buy a car, a home and even their insurance rates. With so much emphasis placed on good credit, it is imperative a person knows how to raise their credit score. With a good credit score, which is typically defined as a score above at least 650, moderate interest rates on credit cards and loans are offered. This can save a great deal of money in the long run.


5 tips to help increase a score and afford a person the luxury of more credit with better rate.

  1. Pay every bill on time even if the payment sent is just the minimum amount due. One late payment can dramatically reduce a credit score. It doesn’t matter if it is only a day late. Late is late and it will negatively impact the overall score. If a payment absolutely must be late, contact the creditor and ask for an extension. Most companies will offer to do this once a year.

  2. Avoid having a bill sent to collections. Even if the bill is paid off, the collection report will stay on a credit report for seven years. Work with a creditor to arrange monthly payments before a bill is sent to collections. Most creditors will accept monthly payments as long as the payments are made on time every month.

  3. Avoid paying off all credit card balances completely. If you want to know how to raise your credit score, it is best to have a balance on credit accounts that monthly payments are made to. This proves the ability to maintain regular payments and will help to increase a credit score.

  4. It is crucial a person pays close attention to his or her credit report. Any unauthorized charges should be disputed immediately. This can also be an indicator of identity theft. As soon as a suspicious account appears on a credit report, it should be investigated immediately.


Pay all of your bills on time, every time. This includes your utility bills, mortgage and auto payments, and all of your revolving lines of credit like credit cards. Check your credit report at least once a year. You can find out how to challenge bad information on your credit report here.