How We Increased Our Credit Score by 38 Points in 45 days
A few years ago while our home in Vermont was being built, we shopped around for a good mortgage rate.
To negotiate the best deal, we obtained our credit reports from the three main reporting services: Equifax, Experian and TransUnion.
And we thought our scores should be higher than they were. After all, we had a perfect repayment history, having never been late on any payments for any reason. But what we found was that we had a few credit cards that sometimes ran close to their credit limits.
Even when paying a credit card in full each month, if the balance reported to the credit agencies is close to the credit limit, your credit score is reduced.
By making sure we never went over 50% of available credit, we bumped our score in less than two months by 38 points.
This higher score allowed us to shave three quarters of a point off the best rate offered before we worked on improving our scores. On a $400,000 mortgage, that was $3,000 a year in savings—$250 a month in the “Hip National Bank”.
There are other things you can do to improve your score, but I urge you to use this one tactic to bump your score.
Pay down your credit cards (or pay them off). Don’t close them unless there is an annual fee so your credit capacity remains high. If you can’t pay them down, you may want to ask for a credit line increase. Just don’t use it. Remember, it’s your credit capacity that makes the difference. Just keep your balance below 50% of available credit.
Your credit score can make a difference in your insurance rates, loan fees and interest rates. Your credit score can even affect you getting a job.
It’s definitely worth monitoring your scores and making sure all listings are accurate.
For the full scoop on cleaning and increasing your score, we suggest you get Chris’ “37 Days to Clean Credit”. It has a 60-day, 100% money-back guarantee. Go here now . . .
PS: There are also some very good bonuses that go with it that make it pretty much a no-brainer.