Celebrity Expert Advice on How to Improve Credit Scores
- Oct. 19, 2011
- Rosemarie Pirio
- Personal Finance
Most people have a basic understanding of what a credit score means and where it comes from; however, I think everyone can agree that there is always room for more information on how to improve your credit score. Let's take a look at what financial experts, Suze Orman, David Bach, Dave Ramsey and Paul Clitheroe say about credit scores:
Suze Orman is an internationally acclaimed personal finance expert and author of books such as The Money Class/ Classroom and Women & Money. She is a certified financial planner and media personality who has appeared onThe Oprah Winfrey Show, The View and The Today Show. In addition she has her own television program The Suze Orman Show. Suze suggests:
Paying Your Bills on Time
- "Your track record paying all your bills, not just your credit card, is the single biggest factor in your credit score."
Keeping Your Credit Limit as Low as Possible
- "Credit scores look at how much of your available credit you've used. When you're close to the limit, you look out of control."
Building a Strong Credit History
- This Provides Lenders with Confidence About Your Financial Behavior
- "For this reason, don't cancel any unused cards because their history will be wiped from your record."
David Bach is a personal finance author of Debt Free for Life, Start Over, Finish Rich and Fight For Your Money. He is a speaker and financial consultant and has been seen on The Today Showas well as The Oprah Winfrey Show to name a few. He recommends:
Scouring Your Credit Report for Errors and Have Them Fixed Immediately
- "You can do this by sending the credit agency a certified letter that explains what information was inaccurate, including copies of documents that verify what you're saying, along with a copy of your credit report with disputed information circled in red."
Setting up Automatic Bill Pay So You Don't Have to Worry About Missing a Deadline
- "Even if it's only a few days late, just one overdue payment can seriously damage your FICO score. FICO pays a lot of attention to whether you make a habit of missing due dates, so a series of late payments can really hurt your score."
Dave Ramsey is a financial guru, author and hosts The Dave Ramsey radio show from 11am-2pm on AM 980. His perspective on credit scores is a bit different than other experts. He says:
Credit Scores Are Not Everything
- "Your credit score is not an indicator of winning financially. All it tells you is whether you are good at borrowing money and paying it back."
- "Don't worship your credit score—because you can live without it."
- But how you ask? He says," Dump debt, save money, and pay cash. Do that and you will be well on your way toward building wealth—not your credit score. And what's more important?."
Paul Clitheroe a financial columnist, author and host of Money television program in Australia keeps it short and simple:
Spend Less Than You Make
- "There are plenty of ways to get ahead. The first is so basic I'm almost embarrassed to say it: spend less than you earn."
There you have it, credit score advice from financial experts. Now go and raise those scores!