5 Keys to unlocking a better credit score

Sometimes people get in over their heads. They rack up some much debt that they're unable to make consistent interest and principal payments and when you're late or unable to make payments, your credit rating suffers. These 5 tips will help you raise a bad score and win favor .
1.Pay more than minimum
2.Work out plan
3.Switch from Credit to Debit cards
4.Cut up those store cards
5.Add comments to your credit report
Discipline and responsibility can build even the lowliest of scores. Paying more than the minimum,reducing the number of cards in your wallet,negotiating a payment plan and taking advantage of the comments section on your credit report can boost you score and improve your odds of success the next time you need a loan.

THE PERFECT CREDIT SCORE

Why? A high score says you're responsible, trustworthy, and in control of your life. A perfect score is 850. Payment history is the single most important factor. Next percentage of what you owe to how much credit is available. Your mix of credit is important, i.e.,mortgage, credit cards, and auto loans.

WAYS TO WRECK YOUR CREDIT SCORE

Do not settle past due debts to play less than you owe. Recent information is more important than past mistakes. Do not transfer balances from a high interest card to a low interest card because new accounts decrease your score and it reduces your debt to available credit ratio. Do not close old credit cards because creditors like to see a lot of available credit. Do not pay off your mortgage because it provides a necessary credit mix. Do not avoid credit altogether. The ideal number of credit lines open is between 6 and 21.

KEEP YOUR CREDIT SCORE HIGH

Cancel excessive credit cards and lower your available credit and usage ration. The longer you have had an account, the better. Multiple request for credit means you're a greater risk. Squeeze all your inquiries into the same 45-day period and they count as a single inquiry.

YOUR CREDIT SCORE

A credit score of 680 has been devalued in favor of scores of 720 or more. Scores range from 330 to 830 and the average is 698. A score of 619 is considered subprime and a score of 770 or more is considered top tier. Each lender however has their own "break point" between tiers because the tier system of credit scores can be fickle.

Asscess Your situation

Before you even start to think about rehabilitating your credit, make sure that you can pay your bills on time and not do any more harm. If keeping up with your credit card bills is still an issue, then call the issuer,explain your situation and try to negotiate payments you can afford. Ask the issuer how that will be reported to the major three credit bureaus: Not paid as agreed, which can hurt your score? Or will the new terms say that you are now paying as agreed

Heal a Wounded Credit Score

Before you begin, make sure you can pay your bills on time and not do any more harm. Payoff credit cards, but not installment debts. Get your debt down to 30% of your available credit. If a credit card ends up in collection expect to lose between 80 to 150 points from your FICO score. A short sale or foreclosure can drop your score 200 points