Friday, June 17, 2011

Tips to Raise Your Credit Score

Raise Your Credit ScoreHere are five ways you can use that bit of knowledge, along with some other expert know-how, to boost your credit rating:

1. Pay Bills Before the Statement Date

Typically, the balance as of your last statement date is the balance that will report to the bureaus, says Barry Paperno, consumer operations manager with, the consumer division of FICO, the company that created the FICO score. So if you pay most of the bill before the statement date, you can lower your utilization rate. And that can equal a higher credit score.

2. Make Multiple Payments

Another way to lower the balance on your statement date is to make periodic payments throughout the month.

If you use your card throughout the week for everyday expenses and pay it off every Friday, you'll cut the amount of credit you're using at any one time. Check with your card issuer to learn how they handle multiple monthly payments.

3. Ask for a 'Good-Will Deletion'

If you only have one or two bad marks on your credit record, you may be able to get them expunged, says John Ulzheimer, president of consumer education for, based in Costa Mesa, Calif.

Say you've paid late, but have an otherwise spotless credit history. You can ask your lender for a "good-will deletion," he says. "It doesn't mean it is wrong or was reported incorrectly. Essentially, what you're doing is asking the creditor to cut you some slack."

4. Pay for Removal

If you have an account that's gone into collection, sometimes collectors will agree to remove the debt from your credit report if you agree to pay if off.

5. Protect Yourself in a Short Sale

After a short sale, the mortgage lender often will report to credit bureaus that the home loan was settled for less than the full amount. In addition, it can also note the amount of the deficit as "balance owed" on the credit report, even though the obligation has been finalized and no additional money is owed.

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