This article will discuss the fundamentals that go into your credit score.  The most major thing, if you want to have a credit fix, is pay your bills on time.

That is the biggest factor that goes into it. What we see is, a lot of people sign up for these services to improve their credit score and they don’t pay their bills on time, so they fix their credit score and they wind up and back in the same place at the same time. So again, pay your bills on time.

The second fundamental of a credit fix is the length of your credit history, which is something that you can’t do anything about.  This is important because you do want credit cards that you’ve had for a while. Keep your credit cards for a while if you have them. You don’t want to keep on applying for the new thing because it’s flashy or has low interest rates.

So build up some history and if you’re young, you can’t have a lot of history at this point in time. But as you get older, you’ll have some more history.  So the length of credit history will help the banks and other lenders know how you’re operating and if you’re going to be a good credit risk for them.  If you are, it’ll be easier for you to get a credit fix.

The other thing is how much money that you are spending as a percentage of what’s available for you. Let me explain. Let’s say you have a $1,000 credit limit. Your credit score is going to look a lot better if you only have $500 of that credit used up as opposed to if you have $999 with that credit.

Because obviously, if you have $500, you’re demonstrating that you can manage your credit better than somebody who is maxing out all their credit cards. So typically as a rule of thumb, you want to have less than fifty percent outstanding balance as a percentage of your credit score. You’ll be able to fix your credit more easily.

The other big thing is, how often are you applying for credit?  The biggest killer of credit scores that we see a lot of times is the store credit cards.  You get ten percent off for signing up today with these credit cards and you wind up having people with $100,000 of credit card debt on these credit cards.  So do not apply for these store cards if you’re trying to improve your credit.

And then mix is very good.  A mix of credit cards, installment loans, mortgages, and car loans is what lenders want to see.  They want to see if a person can handle the credit.  If you have a good mix, you’re showing that you’re capable of managing the credit properly.

These companies make their money in lending, so it’s better for them to give you a loan than to not give you a loan.  But obviously, it’s better for them to give you a loan that you’re going to pay off, so they’re going to work with people who are a lot less risk.

Remember these fundamentals, and you’ll have a good credit fix in your hands. You’ll be able to improve your credit score effortlessly.

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