Facing and Repairing Your Credit Score: Part 2

Facing and Repairing Your Credit Score: Part 1
November 18, 2010
Need Help With Your Business Taxes In The Jacksonville Area?
January 20, 2011
Show all

As we continue our discussion of facing and repairing your credit score, below you will find a list of items you can do to help improve your score.

  • Pay bills on time and more than the minimum required balance.
  • Use credit regularly, but keep the balance low compared to the limit.  It’s better to have two balances that are lower, than one that is closer to your limit. A rule of thumb is to keep the balance to credit limit at or under 35%.  If you can’t get a credit card, purchase a prepaid credit card from a reputable issuer.  This shows your ability to use a card and limit spending.
  • Keep long term accounts open and limit the number of applications you apply for in a 12 month period.
  • Piggybacking – or getting added as a joint account holder to accounts with good credit.  This is actually a good idea for children who will be moving to college or out in the world soon.  You have to add them as a joint account holder, not an authorized user.  This will help your child establish credit.
  • Stay away from finance companies that cater to the high risk lenders.  These companies tend to offer financing at substantially higher rates and have additional fees.  An example is a company that offers cash for your title on your car.
  • Monitor the progress.  Go to CreditKarma and join, it’s free.  That web site pulls the score from TransUnion for free.  It also has a cool feature that shows you what will happen to your credit score when you borrow more money.

Here is a link to the  most frequently asked questions from the  annual credit report website.

I hope this information helps you and provides you with a plan of action to tackle repairing your credit score.  If you need additional help or have more questions, please feel free to contact me.

Jo Hagan, CPA
Jo Hagan, CPA
Jo Hagan is the visionary and founder behind Barefoot Accounting, Inc. She's been in private practice helping businesses like yours grow, understand their numbers, handle tax issues, and more for over 15 years. As a mom, wife, and business owner, Jo understands the struggles business owners and entrepreneurs face, and she has a passion for helping people understand what they need to know in order to be successful in business!

Leave a Reply

Your email address will not be published. Required fields are marked *