Raise Your Credit Score With A Phone Call

MoneyTips

When faced with problems, we sometimes jump ahead to difficult solutions and bypass simple ones. For example, there are a number of things that you can do to increase your credit score. You can pay down debts, make sure that bills are paid on time, review your credit for any errors... or you can try a simple phone call.

Did you ever consider calling your credit card company and asking for an increase in your credit limit? A credit limit increase will raise your credit score indirectly by lowering your credit utilization – the amount of credit in use compared to your overall available credit limit. That same mechanism lowers your credit score when you pay down debt.

Using traditional credit scoring methods, credit utilization accounts for about 30% of your credit score. When the change in credit utilization is reported to the credit bureaus (usually within the next billing cycle for that particular card), your credit score should rise unless the e...

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