As I see It
How to a 800 credit score get it and keep it. #3
Lets continue – You should now have a complete set of your Debts in paper statement form. They will contain all the information you need to make informed decisions.
Control your finances hands on.
So get another piece of paper and list all of your debts, in order of highest interest first.
A-B-C- 1-2-3
Now If you are carrying credit card or revolving debt beyond 30 days.
“Stop doing that.”
If you can not pay your credit card in full each billing cycle then stop over using them, you are spending beyond your means.
When you can pay your cards in full every billing cycle. Then look to your long term loans.
Which ever one has the highest APR/ interest rate is top of the hit list.
Start applying every extra dollar to that loan. When it is gone do it to the next and the next and so on.
Paying your credit cards in full every billing cycle will, better your credit and keep your money working for you.
Paying interest is generally a waste of your money.
On another blog at another time we will talk about how to use low interest money to your benefit.
When you are in front of your debts, paying in full, on time every time. You will start getting low interest offers from your creditors.
That is a signal to apply for a credit line increase one card at a time.
The next big factor on the fico score model is your credit usage.
It is a % figure of your available credit vs. how much credit you are using.
The more credit you have but the less you use the better you score.
The newest factoring in the fico model / algorithm is.
It evaluates over all are you acquiring more debt or Less debt.
Your job is to increase your credit line while reducing your indebtedness.
So this is where we are
#1 – pay on time every time.
#2 – Stop over spending and reduce the money drain.
#3 – increase the credit available while reducing the % of debt.
See the