I have been working on my credit score for years but I seem to have peaked at around 740. I know it's a decent score but I would really like to try for excellent! I don't carry more than 30% on my credit cards. I just purchased a home 2 years ago and have made no late payments on anything in years. How can I get my score to go up?

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Me too, Kathryn on credit score.  I have $550 in debt and one late payment from Chase (which really wasn’t). Suffice to say I cut them off but the ding is there.  I don’t use much credit by choice so it’s not a high priority to me - but have been curious.

If you still have late dings on your report you may have to wait those out. Also, over time, your average age of credit history will go up and help increase your score. Another type of credit line can help as well. Most websites that provide you with a score and report also provides tips or simulators on how actions can affect your score.

There is a lot that goes into credit scores.  There are so many scores (mortgage and care for instance have different criteria).  You clearly know about the 30% of your max limit rule.  Very. Good.  I'm not sure of your situation but closing accounts can be bad.  Types of credit matter as see (mortgage,car, credit cards, etc.).  There are many articles available and probably You Tube thing.  My score is above 820 and I am very careful on what I use credit for.  Best wishes to the 2 of you that I read.

Hi Kathryn, 

Well, you are already doing something right with a 740 credit score!!! Awesome job. I am a bit curious as to your motivation in wanting to improve your credit score? 

A good credit score does not mean you are reaching your financial goals nor how financially successful you are. It just means you trustworthy for someone to lend you money. I would encourage you to separate that having a good credit score means you are being successful with your finances.

Now if you are getting ready to need a loan and want a better interest rate, I would suggest Credit Karma. It is free and will break down exactly what is making up your score. The categories are payment history, credit card use, derogatory marks, credit age, total accounts, and hard inquiries. 

Best,

James

 

Here's a trick my sister uses. She pays her credit card bill throughout the month transferring money directly from her bank account. This brings her utilization rate down really low all the time. Her credit score is in the 800's. // Another thing you may consider is getting a second credit card. This also lowers your overall utilization rate. My score jumped up once my husband put me on the card he uses more for business use. 

Getting added to a card with an already established history would improve your score. Average age could increase and it adds another history of good payments. However, not all companies report authorized users to the bureaus. Opening a new card wouldnt do that and would just decrease your score for awhile. 

I don't know your entire situation(like how may cards you have, mortgage, loans, etc.). The suggestions I have are, either get added to one of your husband's cards that has a couple years of being open or apply for another card. 

The second suggestion is, consider a credit builder loan. A credit builder loan works like this, you agree to pay a certain amount for x amount of months. At the end of the agreement you get the money that you paid into it.(example: you agree to pay $48 a month for 12 months. At the end of it you get like $545).

And lastly, Experian is offering Experian Boost for free(and there's an app for android, dunno about iPhone). What Experian Boost is, it takes things like gas & electric, cable bill, cell phone bill, etc. and raises your score for prompt(preferably no late payments)payments. I believe you need like 3 months consecutive of on time payments for the boost to take effect. The more you utilities, etc. you add the more your score goes up. The only downside it only affects your Experian score.

I hope this helps.

Sincerely, Prince_Alarming

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