West Palm Beach Bankruptcy Lawyers

Tips for Boosting Your Credit Score

Your credit score comes from your credit history and it shows potential creditors how much of a financial risk you may be. It is a three-digit number that can make or break you financially. It is important to have a healthy credit score, typically 700 or higher. It is not easy to improve your credit score, but here are some helpful hints that can increase your score over time.

Check your credit report for errors. Removing errors, particularly late payments or unpaid credit, is one of the easiest ways to increase your credit score.

Keep older credit lines open. Having a long history of active accounts is 10% of your credit score and shows lenders that you are a low credit risk.

Pay your bills on time. Your payment history, including late payments, can count for one-third of your credit score. Bills more than 60 days past due will be shown on your credit report. The more on-time payments you make, the higher your score will be.

Reduce your balances. One-third of your credit score depends on the total balance you owe versus your total credit limit. It is safe to keep your balance less than 80% of your total credit limit.

Use credit responsibly. This accounts for 15% of your score and consists of having credit cards or loans with timely payments.

Avoid new credit. New applications for credit account for 10% of your credit score. Opening a new line of credit will also lower your average account age.

If you or someone you know would like to learn about the various options regarding credit and bankruptcy, contact the experienced West Palm Beach bankruptcy lawyers of the Eric N. Klein law firm at 561.353.2800.