Video:How to Boost Your Credit Scorewith Debbie Anderson
Want to learn how to boost your credit score? This video will show you the best ways to help raise your credit score.See Transcript
Transcript:How to Boost Your Credit Score
Hi! I'm Debbie Anderson for About.com!
About Raising Credit Scores
If you have noticed that your credit score has taken a hit due to financial hardships, then today I'm going to cover a few tips on things you can do to boost your credit score right back up!
Tips for Boosting Your Credit Score
First, reassess your monthly budget and figure out how much extra money you can pay down on any outstanding loans or credit card debts each month. Then apply this extra money to make payments beyond the minimum payments required until you can bring down your debt to income ratio to under 40 percent.
More Tips for Boosting Your Credit Score
Next, call the credit card companies and ask for an increase in your lines of credit because making your available credit limits greater will reduce the debt percentage you now hold on your credit card balances.While you're at it, also remember to ask them to reduce your interest rate fees as well!
Once you have been able to pay off your current credit card balances, continue to use your credit cards for only the purchases you would normally pay for with cash each month and use the cash designated for these expenses each month, such as the utility bill or groceries, to pay off your credit card balances in full each month before the due date.
Continuing to Boost Your Credit Score
Continue this practice for at least six months. Then on the same day, call the credit card companies to reduce your interest rate and increase your available line of credit limits on each of the credit cards again. Once this is done, just remember to never charge more than you can realistically pay off in full in each month after that.With these few added credit score boosting tips, you're sure to see your overall financial health improve!
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