Do you know what makes up your credit score?
- Payment History (35%)
- Outstanding Debt (30%)
- Age of Your Credit (15%)
- Type of Credit (10%)
- Credit Inquiries (10%)
Payment History: Every six months you complete of positive payments will move your score upward. Make an on time payment every month.
Outstanding Debt: You don’t need to carry a balance to improve your credit. You want your balance to credit ratio as low as possible.
Age of your Credit: Open up new, post-bankruptcy credit accounts as soon as possible. Keep them open for the foreseeable future.
Type of Credit: Aim for 3-5 credit cards. Avoid deferred payment loans. If possible, obtain a mortgage or auto loan. They have the greatest impact.
Credit Inquiries: Too many are negative. Don’t let just anyone run your credit (particularly if you know it will be declined). Be picky and choose those that will be of the most benefit in reaching your goal.