How to Bump Up Credit

Giving your credit a bump increases your personal FICO score. And, if you want to purchase a new home, finance a new automobile or acquire the lowest insurance rates, a good credit history and score is key. Bad credit habits factor into low personal credit ratings. Understand the components that play a role in credit scoring and then take steps to bump up your credit.

Instructions

1

Report incorrect data on your credit report. Familiarize yourself with the Annual Credit Report website and get a free copy of your report from TransUnion, Equifax and Experian annually. Check to see that listed information is accurate and file an online dispute to correct mistakes.

2

Allow creditors to withdraw payments from your bank account. Automatic payment withdrawals help you avoid score-lowering late payments. Timeliness makes up 35 percent of credit scores.

3

Use credit only if you're committed to paying off balances on a monthly basis. Accumulating high debts and carrying balances can hurt your personal rating. Amounts owed to banks, lenders and credit card companies make up 30 percent of scoring. Maintain few debts to help bump up your score.

4

Limit your applications for additional credit. Credit checks or inquiries made by credit card companies and lenders can reduce your rating.