Question about credit.........?

Question

im 23.

my credit score is 731.

any suggestions on how to improve this.

my credit isnt that good because i have only had it for 5 1/2 years.

any help would be welcome.

Answer 1

To improve your credit you need to understand what makes up your score.

1. Payment history 35%

2. Time in bureau 15%

3. Types of credit 10%

4. New credit 10%

5. Debt to credit ratio 30%

As you can see 1,2 & 5 are the most important as far as score goes. You need to have your credit card balances at 30% usage or less and always pay on time and in full if possible.

To have the best score/profile people need 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, boats, homes, computers, furniture or personal accounts (installment) all with good long pay history's

And by the way 731 is a very good score.

Answer 2

Do not have a lot of credit cards (if you do and not using it, the credit company will wonder)

Do not use just 1 credit card (you need more than 1 company to report your credit history)

Do not request for credit check if you don't really need to (the more inquiries to your record the less your number become)

Do not use more then 30% of your credit limit (if you use more than 30%, credit company think you are on the way to debt)

Do use a couple credit cards (you need more inputs)

Do pay on due date or before due date (this is to establish your credit with the credit company....once they trust you, they will increase your credit lines and with request...they can lower your interest rate.)

Good luck.

Answer 3

You are old enough to have good credit. Yours is not bad as it is, just be responsible with credit, keep your balances low and it will improve.

Answer 4

Simple. Go into debt. Pay off debt.

Answer 5

Actually contrary to what you may believe that is a very good score. There's nothing wrong with trying to improve it even more but once you cross over the 720 threshold you'll get the best rates and products anyway.

What you can do (if you're not already doing so ) is limit your credit spending to no more than 20% of your available limit.

Do not close any accounts. Even if you're not using them, just cut up the card but be sure to keep the open account history.

Apply for credit sparingly. Don't just at every offer that comes your way a card or 2 is fine.

Vary your credit lines. Credit cards, revolving accounts, different trade lines, etc...