credit card balance




Credit card tip #2
Increase your credit score before applying for a new card



A month or more before applying for a new credit card, you should try to increase your credit score to get a better credit card deal. There are two steps in this process.

Step one: use money you saved to pay off part of your credit card debt. You should try to get your balances to below 30% of available credit line on EACH account.

Step two: try to reduce the number of credit cards with balances: pay off credit cards with small balances completely (but don't cancel them!).

This should boost your credit score and in about a month you should be able to get a better credit card or loan than you would otherwise. Check your credit score before attempting this to make sure it's not bad. You could get a free credit report ones a year from EACH of three major credit agencies here.


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Updated: 4/27/2012


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