Credit Score Optimization: Three Simple Tricks

Drive-up meals, overnight shipping, and quick fixes; in our culture of impatience, we like things to happen quickly. The same mentality is common when it comes to repairing our credit score. We know it is important to have a high credit score and that when practiced over a long enough time period, using credit responsibly will result in a good credit rating. But what if you need results quickly? If you are searching for an easy way you may be able to raise your credit score by a few points, here are three tips:

1) Make payments on your credit cards immediately before the reporting date so your reports show the lowest balances. To find out the best date to make a payment, your credit report should show what day of the month your creditors are sending account updates to the credit bureaus. When you find out this date, make it a point to pay your credit cards about 3 to 5 days prior to when the accounts get reported. Your reports will then reflect the lower outstanding balance, instead of the higher balance, giving your credit score a little boost.

2) Use old credit cards every once in a while. Most of us have a few older credit cards that were used when purchasing that new electronics equipment, or a department store credit account you opened to get 25 percent off your purchase. Pull those cards out now and then and use them for small purchases you will be able to easily pay off the next month. These established accounts will show activity again (positive activity because you paid them off), which will help out your credit score.

3) Available credit is good, so keep your utilization ratios at about 30 or less across all of your cards. For example, if your credit limit is $20,000, maintain a balance at or below $6,500. Furthermore, 3 cards with a $3,000 balance on each is better than one card with a $9,000 balance and two cards with a zero balance; same total better credit score. Although it seems like it shouldn't matter, you will need to learn to play the game to achieve the best score.

So a few quick fixes are great, but they're not going to restore a poor credit score. If you're looking to raise your credit score more than a few points, in less time than it would take for a credit score to improve on its own, you'll need to look past simple fixes. Depending on your credit reports, repairing your credit score may require removing the questionable negative items on your credit reports, paying down high account balances, creating new credit accounts, reorganizing your credit accounts, or a combination of tactics.

Solving credit score problems requires more than quick fixes. It takes time, knowledge, and perseverance to clean up your credit reports. It will be worth it in the end, and in a culture where instant results are expected, credit repair proves that there are things worth waiting for.

By: Stuart Hunter

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Since 1991, Lexington Law, the trusted leader in credit repair, has been helping clients take action on their credit. For more information about Lexington Law or about your credit score, visit LexingtonLaw.com