Raising your credit score can be a daunting task if you do not have a clear idea of what actually impacts your score. The first step to take is to understand the FICO scoring model, which tells you what kind of importance is given to each attribute of your credit report. As per the FICO scoring model, paying bills on time is one of the most important factors. 35% of weightage is given to this factor.
That said, paying your bills on time itself may not to catapult your score to the next level. There are several other parameters on which your score can be calculated. Your current debt is another important factor that determines your score as 30% weightage is given to it.
If you are able to maintain a low current debt and are able to pay your bills on time, your credit score should ideally be in a risk free zone. However, its important to monitor your credit on a monthly basis as a couple of late payment and an extra credit cards can bring down your score rapidly.
Its also a great idea not to indulge in new credit applications as this is one of the factors used in the calculation of your FICO score. 10% of weightage is given to new credit applications while your score is being determined. If you already have considerable current debt, its advisable not to apply for any new credit applications.
When it comes to credit cards, its best to use select credit cards on a consistent basis, preferably the ones that have a high credit limit. This way, it's easy to remember your billing dates and you will not have to pay off several different credit cards every month. At most, its good to use 2 to 3 credit cards. If you already have too many cards try and pay off these cards and close those accounts. This should assist you in increasing your points.
Another great thing to do is to register with companies that can provide regular credit alerts. These services can be of great assistance as they can instantly tell you your credit score from all three credit agencies and help you monitor and manage your credit efficiently. However, one must always be aware that there could be fraudulent companies out there trying to take all your information and stealing your identity by claiming that they can provide you a free score. Usually, most legitimate companies charge money and provide a free trial so that we can assess their service before deciding to pay them. Such services are rare and not so easy to find. Thorough research is required before registering with any such companies.
Hopefully, this information should give you some useful tips on how you can raise your credit score. Increasing your credit score will ensure that you get all your future loans at extremely low interest rate, which is a great benefit. Therefore, it makes perfect sense to invest in services that can help you monitor your score consistently.