High debt ratios are just that… high! Get them paid down as quickly as possible and see your scores jump up. Get revolving accounts below 45% and installment accounts below 80% is the best to start with. Of coarse, getting them below 14% would be ideal. But remember that getting installment loans below 80% and then keeping them for as long as possible will be best for your credit scores but paying the loan off as fast as possible will be best for reducing your interest fees. But we are talking about increasing your credit scores here, not what is best for your pocket book. Well, ok, it works well for your pocket book too, because you will get the best interest rates available and that will reduce your interest and be great for your pocket book.

When you have a new credit card, the tendency is to start using it and using all the credit available up to the credit limit. Don’t! In fact, it would be good to keep a balance on the account for the first 6 months at or below a 14% debt to credit limit ratio to show that you really don’t need the credit and are in control. Then, never ever, ever, ever go over 45% debt to credit limit ratio. If you ever need to use more than this, call and ask for a limit increase before you use it and keep your balance below the 45% debt to credit limit ratio. This will keep your scores high and show that you are in control.

Credit is a tricky subject because we don’t have the secret key that unlocks the proprietary information or formula of the credit bureaus and Fair Isaac Corporation. They created the scoring modules that are in use today to create credit scores on the information in your credit file. However, through exhaustive research and intensive study, we have come to see the secrets and tricks the credit bureaus use and understand how it works… almost. Because there are hundreds of factors involved in creating a scoring module and how it affects the information in your credit file, it is difficult to ascribe a perfect number of points to what a tip or strategy will do to increase or decrease your credit score. However, this much we absolutely do know… that if you do follow the tips and strategies in this book then you will see a rise or fall in credit points depending on if the action is a good action or a bad action on your part. Take heed to read the tips and strategies and relate them to your own credit file and the information contained in it. Read it, get to know it and then read the strategies to use to get your scores going up instead of down. This will help you get the highest scores possible and create an opportunity for a great financial future . Now, go and get start and remember, that Every Point Counts!