Raising your credit score can be a mystery.
And it isn't an exact science how your score is calculated.
But, there are a number of things you can do and avoid doing to pump up your score.
Many people with a score under 700 have credit card balances over 40%.
To raise your score pay down your balances below this amount.
Those with the highest scores have balances between 5-25%.
The reason for this is because creditors like to see that you have a lot of available credit.
Why? Well, if you were to lose your job you would have a little breathing room to make payments with.
It also shows that you are responsible with your assets.
If you can prove that you can take care of a little, they will be happy to give you a lot.
Those with low scores also have a lot, or even just one, slow pay.
Being thirty days late just once can lower your score by up to 50 points.
There are some great ways to avoid this.
The first is to pay your bills as soon as they come in.
Avoid making the giant bill pile on your desk that scares you away.
If this is hard for you enroll in automatic bill pay.
Some creditors will even offer you a discount if you sign up for this and cancel your paper statement.
You will even save in not having to pay late fees.
Collections can also be very detrimental to your score.
Sometimes you may feel like not paying a bill that your insurance should have covered.
But, that small $20 collection can haunt you for years to come.
If you receive a bill that you feel like you don't owe you need to contact the creditor immediately and get it handled.
Simply letting it go by the way side is not effective credit management.
A foreclosure or a short sale can also be damaging to your credit score.
If you are experiencing hard times and finding it difficult to make ends meet it is important that you pay your mortgage first.
If you do not, they can come and take your home from you.
They cannot take the purse you bought last year with your credit card.
The same also goes for your car.
If you are not making your car payment and it is repossessed, how do you plan to get to your work? Make home, auto, and utility payments first and whatever payment you can make on your credit cards last.
But always pay something and do not be late.
A bankruptcy can also be very detrimental to your credit score.
If you feel like bankruptcy is your only option consult an attorney.
But beware, attorneys are not non-profit.
They might encourage you to file to fill their pockets.
If you feel this might be in your future gather all your debt and make a plan you can stick with to pay it down.
Creditors are very flexible right now and are happy to collect whatever they can.
Those with high credit scores have credit cards and they know how to use them properly.
They have at least three credit cards, one of which is with a major bank.
They also use their credit cards.
If a credit card goes unused creditors will often close the card and offer the money to someone who will use it.
The longer your credit accounts are open the higher your score will be.
If you pay off a card, keep it open and continue to use it wisely.
It is also smart to spread around your debt.
If you have a large balance on one card, transfer it to a few other cards so that all your balances are below 40%.
Most credit card companies will charge around 3-5% for balance transfers.
You can also call your creditors to see if they can raise your credit limit.
If they agree to this it is important that you not max out the card.
Simply by raising your credit limit you can raise your credit score.
Being aware of what is on your credit report can be very beneficial.
Know your credit limits, balances, and interest rates.
Checking your credit report only takes ten minutes and can save you thousands in interest rates and fees.