Working to Improve Your Credit Score

(WXYZ) - Many people are trying to tackle bad credit habits in this New Year. If you want to improve your credit score within the next six-to-12 months, here are some steps to follow from experts at the Macomb County MSU Extension office:

1) Pay Your Bills On Time

This is the most important move you can make to improve your credit score because 35% of your score is based on your payment history.

“Every time you make a major payment on time, it improves your score,” says Debbie Studebaker who holds free programs in Macomb County to help people with their credit problems. “Every month if you make your mortgage payment on time -- you’re never late with your mortgage payment -- that helps your score more than if you’re late with your credit card payment once.”

2) Pay Down Your Debt

Studebaker says you need to stop using your cards, and start paying more than the minimum payment every month. She recommends you start with the card which has the highest interest rate. But if you need to see some success to stay motivated, she says another option is to start with the card which has the lowest balance.

3) Don’t Apply for More Credit

This hurts your credit score because it makes you look unpredictable. If you’re considering buying a house or a car in the next year, you should not cancel any cards either. That may also temporarily hurt your score.

4) Avoid Store Credit Cards

These cards usually have higher interest rates. Also, bigger lenders such as banks, Visa, MasterCard, Discover, and American Express are a better source of credit because they have been in business longer and have strict guidelines.

Bottom line - be patient. It didn’t take you a day to bring down your credit score; it’s going to take a while to bring it back up.

The Macomb County MSU Extension office offers free classes to help you improve your credit score.

The next available program is February 25, 2010, from 6:30 p.m. – 8:30 p.m. at the Chesterfield Library at 50560 Patricia Avenue, Chesterfield, MI 48051. Registration is required. To register, call (586) 469-7617.