Tips To Strengthen Your Credit Score – This is always a tricky subject. Just for the simple fact that everyone’s situation is different. To help you out, here are a few tips from Bankrate that will help you move in the right direction…

Watch Your Credit Limit – A way to help strengthen your credit score is to keep the balances on your credit cards low. How much revolving credit you have vs. how much you’re actually using. According to Bankrate, the optimum is 10% or lower.

Reduce The Number Of Cards – This isn’t what you think! This means stop using all of your credit cards. Instead have one or two cards you use for everything. It may hurt your credit score to have a $50 balance on one card and a $30 balance on another. Instead, pay those off and keep to just a few main cards.

Good Debt vs. Bad Debt – Good debt is where you have a long history of repayment records, such as a car loan. Some try to get this removed from their credit report once they pay it off thinking it could be harmful to their score when in fact it can be great for their credit score.

Pulling Credit – When shopping for your next big purchase such as a home, car, etc, these lenders will need to pull your credit score to see what loan options you have. Try sticking to a short time frame when shopping around and pulling your credit score with different companies.

Pay Bills On Time – This might seem obvious but it’s even more important when you are trying to make a big purchase. If you are saving up for a home, don’t pass on paying that electric bill because you need that money for your down payment. Mistakes like this can change your credit score which can effect the purchase of your home.

Don’t Hint Risk – Missing payments or paying less on your credit card than you usually do can hint risk to your card issuer. Taking out cash advances or paying for a divorce attorney can do this as well. Although it doesn’t necessarily effect your credit score, it is still something you should avoid.

Stay Informed – Whether you are looking to make a big purchase or not, it’s still important to know where you stand on your credit report. However, don’t obsess over until the moment comes where you are ready to make that big purchase. Pay your bills on time, keep a low balance on your card and create some consistency. Feel free to monitor your score every four months or so to know where you stand.

With these tips in mind, strengthening your credit score will be an easier process! Do you have any tips to share? Comment to share with us!