Consolidating debt credit score

19-Jan-2018 10:49

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The longer your history of good debt is, the better it is for your score.

One of the ways to improve your credit score: Leave old debt and good accounts on as long as possible.

“A good way to improve your credit score is to eliminate nuisance balances,” says John Ulzheimer, a nationally recognized credit expert formerly of FICO and Equifax.

Those are the small balances you have on a number of credit cards.

Even if you’re paying balances in full every month, your credit score will still weigh your monthly balances.

One strategy: See if the credit card issuer will accept multiple payments throughout the month.

If lenders are using the newest forms of scoring software, then you have 45 days, says Ulzheimer. Older forms of the software won’t count multiple student loan inquiries as one, no matter how close together you make applications, he says.What you might not know: Even if you pay balances in full every month, you still could have a higher utilization ratio than you’d expect.That’s because some issuers use the balance on your statement as the one reported to the bureau.The reason this strategy can boost your score: One of the items your score considers is just how many of your cards have balances, Ulzheimer says.

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That’s why charging on one card and on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.

That’s because if someone is making multiple applications for credit, it usually means he or she wants to use more credit.