Your credit score is determined by a number of factors, such as your payment history on credit debts, the amount of your debt, what your credit availability is, the length of your credit history and any new credit. If you've made a proposal or request for more or increased credit, this can negatively affect your credit score. The algorithm by which your credit store is determined is complex and depends on the above factors to varying degrees. There are several actions to consider in getting your credit score raised after a credit request.
Decrease Amount of Credit Debt
In general, the less credit debt you carry, the less a risk you are (thus, the higher your credit score). Reducing your credit debt to less than half of your total available balances will help raise your score. Sometimes having a little credit debt is advantageous to your score. Credit simulators available online from credit agencies such as FICO, TransUnion and Equifax can help you determine how much, if any debt, is optimal.
Credit History
There's not much you can do to change the length of your credit history. The longer you've had good credit, the higher your score will be, but it takes many years to move the needle significantly, so just keep up with your payments. Over the long haul, this will work in your favor.
Payment History
Having a good record of on-time payments is an important component of your credit score. If you have an outstanding late payment, or if you have a bad debt on your record, clearing that up will help a great deal. If the lack of payment is due to an error or misunderstanding, see if the bill holder will ask to remove it from your credit-reporting history. Most derogatory items are stripped from your credit history after seven years. Removing derogatory items, if you have any, is an immediate way to increase your score. You should examine an up-to-date credit report to see if there are any errors; if so, appeal that they be removed. You are eligible for a free credit report every 12 months by law.
New Credit Requests
Constant requests for new credit will cause your score to dip. Refrain from credit requests, and if a vendor or other party (such as a landlord) requests a credit check and you agree to it, make sure they do a "soft credit check," which allows them to view your credit history without it counting as a request for more credit.
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