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Improve Your Credit Score
By now, everyone knows it's important to clean up your credit history before you apply for a home loan. But did you know that fixing your credit will also improve your credit score?
A credit score is like a financial SAT: It analyzes your bill payment history, how much credit you have, how you use your credit, and how long you've had various lines of credit. Each is weighted differently, but your credit score takes every one of these categories into account.
How can you improve your credit score? Start by buying a copy of your credit report and score. Analyze the report for errors. Close (in writing) any credit accounts you don't need. Don't open up any new accounts unless there is a good reason. Never charge more than 70 percent of your maximum available balance.
Finally, watch how you spend your money. Nothing drags down a credit score as quickly as having a judgment, charge-off, repossession, or bankruptcy appear on your credit history.
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