You should also have a mix of different trade lines. Limiting yourself to 3-5 revolving cards and installment loans such as an auto or home loan will result in a higher score than multiple revolving accounts alone. It is also important not to open and close credit accounts frequently. Transferring balances to new intro-rate cards may look attractive, but lenders also like to see aged accounts with perfect payment history.

In a situation where you do not have credit scores due to lack of use of credit in the past, you can apply for a couple of credit cards and the three major credit bureaus will create a credit profile for you. However, it can take 3 to 6 months for the credit scores to show on your credit report. Always manage your credit in a responsible manner to get higher credit scores.

One of the best ways to improve your credit scores is to look at your balance to limit ratios. Open up your latest credit card statements and write down your balances on one line, and your credit limits on another. If the balance on any one of your cards is more than 50% of your limit, you may see immediate benefits by either paying down the balance until it is below 40% of the limit, looking into raising the credit limit on that card, or by moving around some the balances onto other cards which have plenty of available credit. If many of your credit card balances are above 70% of their limits, you may be a good candidate for a debt consolidation refinance to help reduce your debt ratios and improve your credit scores. To review your credit with a financial professional experienced in analyzing credit reports, contact a financing advisor at 703-891-4509 or via email at brian@bestvirginiahomeloans.com