How to Enhance a Good Score to an Excellent Score

If you are planning to apply for a big loan such as a mortgage, you would want to work on enhancing your credit score from good to excellent. While many lenders give good offers to customers with a score of at least 720, you can surely grab the best deal if you can reach a score of 750 or higher.

True enough, a higher credit score will not only open more doors of opportunities for you, it will also give you the confidence you need when negotiating with a potential lender. The question is, how can you enhance a good score to make it an excellent one?

Check your credit report. If you have not yet ordered your free credit report for this year, then you can do so now through You can order all your free credit reports from the three major credit bureaus (Experian, Equifax, TransUnion) at once or order one free report at a time throughout the year. Remember, is the only source of free consumer credit reports authorized by the government. Checking your report will give you the chance to correct errors which can be affecting your score (if applicable).

Keep your credit card balances minimal. If you own a credit card or credit cards, pay down as much as you can from your charges. If possible, pay off your full balance. Keep your charges as a low as you can. Ideally, you should not use more than 30% of your credit limit on all your accounts. Why? Credit utilization makes up 30% of your FICO score so the less you use your credit limit, the more you can raise your score.

Make sure that all your accounts are reported. It is a good idea to have different types of credit on your account. Aside from credit cards, having at least two different loans in your name shows your capability to manage debt and credit. Take note that some lenders may not report payments to the bureaus. If you have auto loans or a personal loan which is not showing on your report, call up your lender immediately and ask them to report your credit information. However, if you don’t have any other types of credit, this is not the time to start applying for a loan just to raise your score.

Set up for automatic payment. Signing up for automatic payment will ensure that you will not miss a single due date, be it with your credit cards or existing loans. Let’s not forget that timely payment is a must if you are after an excellent score since 35% of the FICO scoring system is based on Payment History.

Give yourself time. Give yourself at least six months to work on improving your credit report score before submitting your loan application. Correcting errors in your report can take up to a month, as the credit bureau will often conduct a 30-day investigation to make sure that your complaint is valid before updating your credit report.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2011

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