Getting Out of Debt Fast

Increase Your Credit Score

Having a strong credit score is more important than ever today with credit limits being slashed, tighter credit card restrictions and anxious lenders. One excellent way to increase your credit score is to get a credit card and only charge a few things a month on it such as groceries or gasoline and then pay the card off each month. This simple trick can increase your credit score by 100 points in less than four months.

Approximately 10 percent of your overall credit score is based on the different types of credit lines you have open. An additional 15 percent is based on how long you've maintained those lines of credits. If you want to increase your credit score, don't close a line of credit that you've had for a number of years because this will erase part of your credit history. Instead of closing out the credit line, use it occasionally and then immediately pay off the balance. Be careful though, because too many credit card accounts can flag you as a risk. If you have to many credit accounts (such as four or five different companies), close the newest account first until you only have two credit cards.

Increase your credit score by maintaining your credit card balances to 30 percent or less of your available credit limit. This ratio makes up one-third of your overall credit score. This is important to keep in mind if you are trying to consolidate your credit card debt.

The best way to increase your credit score is to pay your bills on time and keep your overall debt low. This will develop a good credit history which will help you get the best interest rates. This will take some time but sticking to a financial plan will increase your credit score.