Tips On Improving Your Credit Score

SACRAMENTO, Calif. - (Business Wire) Credit cards are the fastest growing form of consumer borrowing and many Americans have been impacted with sky high limits. With the sinking economy, lenders are reducing limits, leaving consumers faced with the difficult situation of bad or no credit. For those committed to changing their credit score and charging habits, the University of Phoenix is offering the following tips to help obtain the credit score you deserve:

1. Pay Your Bills On Time. The single greatest factor affecting your credit score is your payment history. If you pay on time and do so for years, this will lay a solid credit foundation.

2. Start Small. If you have limited or poor credit history, you most likely will not be approved for a large amount. Lenders like to see that you are financially responsible first.

3. Check Your Credit Report Annually. It's best to look out for mistakes and correct errors quickly because even inaccurate marks can stay on your credit report for seven years.

4. Avoid Letting Accounts Be Turned Over To A Collection Agency. Lenders don't want to lose your account to collections. If you're late on your payment and foresee a problem getting your account current, call the lender.

5. Reduce Your Credit Balances. How much you owe relative to your total credit limit is a heavily weighted factor in your credit score. It's good to keep your balances at or below 25 percent of your credit card limit.

6. Don't Open New credit cards That You Don't Need. Having credit available just tempts you to use it. Only have as much credit as you use.

7. Close Unneeded Accounts. The less available credit you have, the less risk you pose to a potential creditor or lender and the less tempted you are to use credit unwisely.

8. Avoid Unnecessary Inquires. Every time you apply for credit, or your credit report is accessed, it is listed on your credit report as an inquiry. Numerous inquiries appear that you are shopping for credit, which can identify you as a high risk for creditors.

9. Take Care Of Collection Accounts. Make sure all collection accounts are paid and listed as paid on your credit report.

10. Pay Off Credit Cards. This shows that you use credit wisely and aren't spreading your funds thin.

University of Phoenix