Credit Info

Timely Bill Payments

A key to credit improvement is paying your bills on time, every time. This includes your utility bills, mortgage and auto payments, and all of your revolving lines of credit like credit cards. Check your credit report at least once a year. At Fair Credit Advantage, LLC we will help you uncover strategies to challenge negative credit report data.

Long-Term Strategy for Credit Improvement

Keep your accounts open as long as possible – even if you are no longer charging on the card. The best policy is to keep those unused accounts open, blow the dust off your card every few months to make a small purchase, then pay it off. How long each of your accounts have been active is a major factor in your credit score.

Remember that this all takes time – Following the above steps consistently over a long period of time will increase your credit score and allow you to qualify for better loans and lower interest rates. Repairing your credit score does not happen overnight, so if you do these things for a few months and do not see a large increase in your score, do not give up. They are all habits that you will want to maintain throughout your life, as they will help you to keep your finances and lines of credit under control.

Master Credit Card Usage

Smart credit card management is a crucial step toward credit improvement. Maintaining balances below 30% is key. Demonstrating timely payments and maintaining several active, non-maxed-out cards is ideal. If high balances exist, prioritize paying them down. Strategic card usage is important. Avoid the misconception that avoiding credit use altogether is the solution. For those concerned about managing cards, consider a focused approach like using cards solely for utility bills, ensuring they're paid in full before the due date. This guarantees timely bill payments and cultivates a habit of balance clearance.