How can you improve your credit score in South Carolina? So, you owe money—who doesn’t? But did you know that how much you owe makes up a whopping 30% of your FICO® Score? It’s like your score’s version of a love-hate relationship with your debt. The real kicker here is your credit utilization rate—basically, how much of your available credit you’re using on those trusty (or not-so-trusty) credit cards. While some experts suggest you keep this rate under 30%, it’s not like there’s a credit utilization police. But hey, the lower, the better. Aim for a number so low it makes your score do a happy dance. It’s virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can’t “on the spot.” But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible. There are three credit bureaus or agencies.. EXPERIAN – EQUIFAX – TRANSUNION Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies. Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made “consumer-originating” credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what’s on them, and smart consumers shop around for the best mortgage and car loans. Actions You Can Take: Taming the Credit Beast Got a credit card balance that makes you wince every time you look at it? Time to make paying it off your number one priority—like, before “binge-watching your favorite show” priority. Here are a few tricks to tackle that beast: Debt Consolidation Loan: Turn your multiple debts into one neat package. Balance Transfer Credit Card: Shift that debt somewhere with zero interest and give your wallet a break. Debt Management Plan: Call in the pros to help you organize that chaos. Debt Repayment Strategy: Try the debt snowball (smallest balance first) or avalanche (highest interest first) method and watch that debt melt away. Unsolicited credit card solicitations in the mail don’t count against your credit report, so don’t worry. The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It’s never a good idea to take on more credit than you can handle. It’s said that by carefully managing your credit, it’s possible to add as much as 50 points per year to your score. Credit card companies report to the credit bureaus about once a month—like clockwork. As you chip away at your debt, you might start seeing results in your credit score within a few months. So, keep at it, and soon enough, your credit score might just throw you a party. THE FASTEST WAYS TO IMPROVE YOUR CREDIT SCORES Late payments work against you. It’s extremely important to pay bills on time, even if it’s only the monthly payment. I know this one is obvious but it can’t be stressed enough. Don’t “max out” your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. Pay off your credit lines, BUT, NOT the oldest one.