Fix Credit Score Strategies:
Raise and Maintain

If you're looking to achieve a good credit score, then you may need some Fix Credit Score Strategies. Credit scores are somewhat of an unknown figure in a financial plan. The strategies to increase and maintain them are not common knowledge.

The Strategies

• Run your credit report.
  

  This should be done first. You need to establish a baseline. You need to know where you are now in order to get to where you want to be.

  How can people fix credit scores if they don't know what they are?

  We hear that 80% of credit reports have an error on them. This erroneous data can be bringing down your score, causing you to pay more interest. What you don't know can hurt you.

  There are some online resources where you can get a free credit report and score. Take advantage of them.

• Have 2-3 active credit cards.
  

  I'm talking about major credit cards like American Express, MasterCard, Visa, and Discover. If you have retail cards like Nordstrom and Best Buy, we would suggest closing them. Oh yeah, pay the balances first.

  If you don't have enough cards, open some up. It will lower your fico score initially because you are applying for credit. But, they will help in the long run because you are working to deepen those roots.

• Increase your credit availability.
  

  Call your credit card companies to increase the credit availability on your cards. You don't want your balance on any card to exceed 30% of its availability. Don't max out your credit cards!

  We know it sounds crazy that people can fix credit scores by increasing their credit card limits. But, a high limit coupled with a low balance looks less risky.

  And remember, your credit cards are a backup resource for emergencies. The greater the availability, the greater the resource.

---

A few months ago, my wife's fico score was 762 and mine was 750. And the answer is yes, my wife does hold that over my head.

But the magic number for your fico score is 720. I'm not sure why, but that's the number that lenders view as capable of getting the best rates. There's no reason to work for a higher number.

This is your adult report card. Make 720 your goal. Run your report.

Check if you're passing...or failing.

Extra Credit

Here's some extra credit, in addition to our Fix Credit Score Strategies, for those of you who want to look better on your report card.

• Automate your bills.
  

  You don't have to carry three credit cards in your wallet and rotate charges to keep them active. Set up some bills to be paid with the card (i.e. phone bill, cable bill, etc.) They can be as small as you want.

  Then at the end of the month, be sure to pay the balances on those cards. Use online banking to automate this process.

• Add your child as an authorized user.
  

  There's not a better time to teach your child how to use a credit card than when they're young. Have them added as an authorized user so they can start building their credit history along with you.

  Teach them the importance of being responsible with their fico score, paying their bills on time, and other productive ways to use a credit card.

  (And tell them that a t-shirt is not worth a credit card in college.)

• Deepen individual roots.
  

  If your spouse needs to rebuild his/her credit, put the car loan under his/her name. Establish your partner as a stand alone borrower. Having good credit between the both of you can increase your productivity by having the ability to use either fico score when investment opportunities arise.

• Learn ways to prevent identity theft.
  

  ID Theft Prevention

  See our Identity Theft Prevention 3 part series:

  Learn ways to prevent identity theft, stop it, and report it to help secure your personal information.

  Identity theft can tarnish your once golden credit score. Learn the strategies to stop identity theft before it starts. We have provided a series of articles that will help you keep your credit score high and your identity in tact.

  Our tips and strategies will help you prevent, stop, and report criminal activity using your personal information.

If you have a good credit score, these Fix Credit Score Strategies will still be helpful because now you will know how to maintain them.