Your credit score is important when applying for a loan or a line of credit. Although it can take awhile, there are ways to increase your credit score if you find that it's too low. This is a guide about raising your credit score.
I was told that I shouldn't bother paying off my debts (other than student loans), because paying it out won't change my credit score at all. It will still be lousy, so I might as well keep my money. True?
By Bluesome from Tonawanda, NY
By JustPlainJo
05/20/2009
I agree with everyone else here. My credit score is improving, and all I'm doing is paying a few dollars more than my minimum credit-card payment every month, on time. (For example, my minimum due this month was $75; I paid $80.)
Even my hubby's credit score has improved to some extent, on this same principle. It also saves us a fortune in late fees!
I'm not educated on all the ins and outs of credit scores; all I know is, the less percentage of your available credit you're currently using, the better your credit score. Potential creditors (and potential employers, etc,) see you as a better risk. Who knows? Next time you're ready to buy a car or refinance your house, with a better credit score (720+ is considered good,) you're more likely to be offered a lower "prime" rate.
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