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Question for the Money Doctors

Question submitted on May 12, 2012.

Question

i have gap credit of 300 how do i build it higher ?

Answer

To improve your credit score, do the following:

1. Pay your bills on time - this means rent, utilities, car payments, credit card bills, etc. Late payments definitely hurt your credit score.

2. If you have existing credit accounts such as credit cards, store credit, etc - keep the accounts open for a long time. Constantly opening and closing accounts will not help.

3. Do not exceed or get close to your credit limits. Your credit score is based upon a ratio of credit used to credit available. Stop incurring more debt.

4. Schedule a meeting with a certfied consumer credit counselor. In most areas, you can locate one by dialing 511 on your telephone. The United Way can make a referral for you. In some cities, there are agencies that can make a referral for this.

5. Take a financial literacy class - this is offered through many community colleges or city rec. departments. Occasionally financial professionals volunteer to teach these classes. You can contact your local CPA Society for a referral.

6. Pick up another job and use that income only for paying off debt. Please make sure you are claiming at least Single-0 on your withholding so you will not owe additional taxes at tax time.

7. If you get a tax refund or bonus from work, use it pay down debt.


For additional information visit http://www.360financialliteracy.org/