Raising a So-So Credit Score

There is a lot of advice out there for people who are interested in rebuilding low credit scores. These plans usually call for a massive, all-encompassing overhaul of spending practices and credit habits. But for millions of Americans, these plans may be too drastic to be practical. Most people have a credit score that falls in the medium-to-high range. For these people, the usual advice may not apply.

Credit Tips

Though FICO scores range between 300 on the low end and 850 on the high end, approximately 60% of people fall between 650 and 799. This means that the majority of people would benefit more from a subtle change in their credit habits, rather than a massive overhaul. With that in mind, the following tips may help you increase your score:

Utilize only a small part of your available credit. While credit can help you get that big-screen TV you've had your eye on, saving up for it and purchasing it with cash or putting only part of it on credit may be the better option.
Use different types of credit, such as installment, revolving, mortgage, and consumer finance.
Do not check your credit score too frequently. If your credit habits are good, trust that your score will remain high. Checking too frequently may serve as a red flag for lenders, who wonder why you are so concerned about your history.
And, as always, continue to pay your bills and debts on time. This is the biggest single aspect of maintaining a high rating.

By following these simple tips, you can raise your score without overhauling the way you live your life.

If you are interested in learning more about how FICO scores are tabulated, please visit the website of the Arizona bankruptcy attorneys of the Harmon Law Office, LLC, today.