Saturday, February 6, 2010

The Important Question Of How To Raise My Credit Score

Many of us some time in our lives asked others and ourselves that important question: how to raise my credit score? The reason the question of how to raise my credit score is so important is the fact that a higher score not only allows you to borrow more money, finance your car or buy a house, but it also allows you to lower your interest payments. If I would raise my credit score, my banks would see it and, since the risk of investment lowers if I raise my credit score, would lower my interest rate and I will pay less in interest payments to service my debt.

So how do I raise my credit score? There are several important points to notice here. First of all, making payments on time and regularly will help me to raise my credit score. The longer you continue to keep your credit activity positive, the higher your credit score is. I can also raise my credit score over time by showing the repaid debt on my credit history. For example, if I purchased a car and received a loan to finance it and repaid it in full later, this activity will be displayed on my credit report and will raise my credit score.

Another way to raise my credit score is to have several credit cards. However, just having credit cards will not raise my credit score � I will need to use them regularly and make payments on them regularly. As you can probably see by now, the main thing that needs to be done in order to raise my credit score is to make regular payments. That shows the creditor that their risk of giving me the chance to borrow money is lower.

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