Anonymous
Anonymous asked in Business & FinanceCredit · 3 years ago

How can i increase my credit score?

My credit score is around 740 and it's been hovering there for over 3 years. I'm planning on purchasing a house within a year and was told having a credit score above 750 would give me lower interest rate which im not too far from but can't seem to get there. Any advises would be appreciated, thanks.

Update:

Never missed a payment, all the acc's are in good standing. My credit card utilization is under 5%. I try to maintain below 10% of the available credit. Don't have too many open acc's (i don't think: 4 credit cards and 2 retailer acc's) that's about it. I do have a car financing payment of about $25k. Thought about getting rid of the car payment but heard some stories that it might actually be counter-productive and reduce the credit score.

8 Answers

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  • 3 years ago
    Favorite Answer

    1) Don't have new inquiries for a while. Don't open new accounts, etc.

    2) Don't close your oldest credit cards.

    3) Maintain a utilization ratio (balance owed divided by credit limit) less than 10%

    Also, the whole thing about your credit score giving you better interest is pretty much bullsh*t. Once you're in "Good" territory, there won't be any significant difference between you and someone with an 800. If you end up getting a FHA loan, then your score won't matter at all. If you qualify for the loan, your interest rate is fixed by statute, not your credit score.

  • Anonymous
    3 years ago

    If you have an excellent payment history on all your accounts and the score is hovering there, then the factors that could be affecting it are either too much credit (close unused accounts and only keep open what you absolutely need), or you are using too much of your total available credit. Paying on time is good, but doing that while maintaining maxed-out accounts can have a dampening effect. So work to get those revolving balances down. Shoot for 30% or less of your credit limit.

  • 3 years ago

    It's hard to say without knowing what your account situation is.

    Don't use more than 9% of your credit line on any credit card and make sure your overall utilization is between 1 and 9%. Don't apply for credit you don't need, but if you have only one card you should add another one or two. It's counterintuitive, but people with more accounts often have higher scores than people with just one or two. Don't add accounts within 6 months or so of applying for a mortgage.

  • 3 years ago

    Do nothing. Doing something now to try to increase it will probably decrease it at first. When you do something that will increase your score, it can take years before it increases it. If it's something that requires applying, then your score decreases, for the first year, because applying decreases your score.

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  • tro
    Lv 7
    3 years ago

    since it has remained the same for three years, it is not likely you can do anything to increase, certainly nothing within a short period of time, credit scores do not change over nite

  • 3 years ago

    Avoid opening new credit accounts, pay down any balances you might be carrying and just keep paying those bills on time.

  • 3 years ago

    Get a car loan (which you did. That will help as time goes on), get a personal loan, or just figure your score is high enough. {Ask the lender.}

  • 3 years ago

    Nothing

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