Getting your credit score to 800 points or more can seem like an impossible task, especially if you have had financial trouble and damaged your credit in the past. Fortunately, anyone can get their credit score in the 800 range by following some simple tips. While getting your credit score this high will take time and dedication, it is well worth the effort. A good credit score has the ability to save you thousands of dollars a year in fees and charges as well as helping you acquire the things that you need when you need them. Here are some actions that you can take to increase your credit score by a considerable amount.
Make All Payments On Time
If you want to have a good credit score, it is important for you to make all of your payments on time to keep your payment history clear of negative information. Your payment history accounts for 35% of your total credit score and having a late or missed payment in your history can drop your score by a considerable amount. Make a habit of paying all of your bills as soon as they arrive at your home to ensure that you do not forget about them and miss the due date.
Keep Credit Balances Low
It is also important for you to keep the credit balances on your credit cards as low as you can. If you can pay off the balance of your credit cards each month, you should do so. Paying off the balances will not harm your credit score and will reduce the ratio of credit used to credit available, another important part of the calculation of your credit score. If you cannot pay off your credit cards each month, try to keep your balances to less than 10% of your total credit limit for optimum results.
Be Selective
Many people do not realize that applying for credit actually hurts their credit score. Every time someone applies for an additional credit product, whether it is a car loan, a personal loan, or a store credit card, they can lose points on their credit score. If they make a habit of signing up for multiple store credit cards to get discounts on their purchases, their credit score can drop by a considerable amount without any missed payments or other negative financial actions that you would typically associate with a drop in your credit score. Always choose credit products that will benefit you for a significant period of time, not just one time at the register of a particular store.