5 Tips to Raise your Credit Score to Rock Star Status

Credit-History-iStock_000016583765XSmall-150x150It seems like everybody is trying to be a credit score rock star these days.  And why wouldn’t you?  Having good credit makes you eligible for the best credit cards, loans, and mortgages. Here are some great tips to help raise your credit score to rock star status!

Pay your bills on time!  Good credit doesn’t always mean having no debt, but rather demonstrating that you can manage your debt.  Going in collections can really bring your credit score down.

Have unused credit available.   “Credit utilization”—how much of your credit you actually use—accounts for 30% of the credit-score calculation.  If you are almost maxed out, try opening a few accounts and keep them zeroed out.  Or ask your credit card company for a bump in your limit and leave the extra credit untouched.

Maybe being over the hill isn’t such a bad thing.  Having accounts that are open for long periods of time can be helpful!  If you are young, think about asking your parents or grandparents to open an account with you so you can benefit from their good credit!

All Debt isn’t bad debt!  Great deals of consumers have some sort of debt, but make your debt seem worth it!  School loans or home loans show you have ambition and won’t be total drag on your credit!

Be smart about you debt!  Double think before you go and put something on your credit card or take out a cash advance.  Is this something you REALLY NEED?  Is there a smarter or cheaper way and getting it?  Do all your research before you make a hasty decision that could affective your credit for years to come.