1) Credit scores are heavily effected by credit utilization. i.e. the level of use of open accounts. For example, A client with a $500 balance on a card with a $3,000 limit would score higher than a client with a $2,500 on a card with a $3,000 limit.
Solution: Call your credit card company and ask for your limits to be raised. This will make you look less "maxed out" and raise the score.
2) The optimum amount of revolving accounts to have open is 2-4. Any more than that will pull the score down. Clients are penalized for 5 or more open revolving accounts. This is why after a debt consolidation loan the credit score usually increases.
Solution: If you have 5 or more open revolving accounts, have the balances transferred to another card and close the original account. Also, unused department store cards lower the credit score, so close these types of accounts as well.
3) Credit Inquiries can pull down a credit score between 8-10 points per inquiry.
Solution: Contact the credit bureau and dispute recent credit inquiries that you did not authorize. Do not apply for new credit because they must pull credit every time you apply.
4) It goes without saying that any type of delinquency on the credit can effect the score.
Solution: There is really nothing that you can do here unless the delinquency is an error. If it is an error, contact the credit reporting agencies below.
EQUIFAX: (800) 233-7654 / EXPERIAN: (888) 397-3742 / TRANS UNION: (800) 916-8800
New York State Banking Department
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