How can I boost my credit score?

[EdMan2]

I'm 23 years old, and I want to build my credit up as far as I can go. I just checked it for the first time using that MyFico scorewatch free trial and I have a score of 725. I have about $1400 debt in CC with a limit of $3900, and some student loans. I have never missed any payments, but I'm guessing the loan, and the CC debt bring my score lower. What can I do to raise my score? I have already sent $700 to the CC, so its already down by 50%.

[poundwise]

Your score is already very good.

I would say that reducing the balance on the credit card is the best way. Beyond that, I wouldn't put too much effort into it. Get that balance down and keep paying your bills on time.

[jIM_Ohio]

Your score is excellent because you have debt and are paying it. Your score may actually go down once you have no debt.

A high credit score does not win you anything unless you need credit.

[th_tan]

paying off debt increases your score. Also, your credit score goes up as you accounts age.

[EdMan2]

Yea, I think the fact that my credit line is only a little over two years old lowers my score a bit. I payed off 50% of my debt on my CC this last billing cycle, so hopefully I'll see a slight increase.

PS: I want to apply for a new CC. I have a bank of america Visa right now. I never payed attention to APR% before because I didn't know any better, so the card is something like 21% APR. I want to get a new card with a lower %, should I wait until I have payed off my debt and boosted my score to do that? I'm thinking of going for an Amex.

[disneysteve]

Originally Posted by EdMan2

Yea, I think the fact that my credit line is only a little over two years old lowers my score a bit.

I want to get a new card with a lower %

Length of credit history is important, and you can't do anything about that one except wait. As you get older, the age of your accounts will increase and contribute to your score.

The APR on your credit card is of no significance at all. Why? Because you should be paying your bill in full each and every month. If you can't afford it, don't buy it. Once you pay off your remaining balance, you should never carry a balance again. I honestly have absolutely no idea what the rates are on our credit cards as it is totally meaningless to me and we charged nearly $32,000 in 2006. We didn't pay a penny in interest charges because we never carry a balance.

[vince]

If you call the credit card company and tell them that you should not have a 21% apr as you have a good credit score. Speak to a manager at the Credit card on the phone and tell them you got an offer for a new card (make up a name if you have to (ex visa, mastercard etc)

They will cut your rate on the spot as they dont want to lose a customer. You can find more info on how to do this on David Bachs website www.finishrich.com

I wouldnt open another card as you will be tempted to run up the bill, I made that mistake.

[ericmedem]

Originally Posted by th_tan

paying off debt increases your score. Also, your credit score goes up as you accounts age.

Not always if you reduce your open accounts because of paying off all of your debt your scores can actually drop. I have witnessed this first hand

[ericmedem]

By the way your score is great, at my best I got up to a 740. I currently have about 1.7 million in debt and my score has stayed around 720. typically you will want to just be sure you have over a 680. below 680 and things can get rough

[anonymous_saver]

Even if you get a new card, don't cancel this card (unless it has an annual fee) so that you can keep the history. Just don't use the card, or use it once every few months on a small purchase that you can instantly pay off.