10 Ways to Improving Your Credit Score

As Credit Bureaus are new to Jamaica the credit information databases will take a little time to mature, but as they do, the credit scores will become more predictive and reflective of how Jamaicans manage their credit. The standard score range is typically from 79 - 599, with 300 being very bad and 599 being exceptionally good, which is rare. On average a good score is in the range of 450 to 500.

Credit Scores are determined by a number of different factors, all of which contribute in varying degrees to the total credit score.

Listed below are credit behaviors that will most influence you’re profile.

1. First thing to do is get a copy of your personal credit report to see for yourself what is contained in your credit report. Once you have a copy of your report, you can determine the accuracy of the information and rectify any errors. Your score is calculated based on the information in your credit report, so certain errors there can really cost you.CRIF NM Credit Bureau will provide you with your fist credit report for free. CRIF NM is located at 15 Hope Road, Kingston, unit 64, of the Winchester Business Centre.

1. Debts that have not been paid, Bankruptcies/ legal actions, and disputed balances will have the most detrimental effect on your credit score. These items must be dealt with first, as they will take the longest period of time to reverse the negative impact on your score.

1. Not paying your bills on time, late payments and collection orders can also have a significant negative impact on your score. If you have missed payments, get current and stay current.

1. Pay off debts rather than shifting them to other accounts. Focus on bringing balances down.

1. Re-establish your credit history if you have had problems in the past. Opening 1 or 2 new accounts with small limits and paying them on-time, will reflect positively on your credit profile.

1. Apply for and open new credit accounts only as needed.  Avoid applying for credit unless you have a genuine need for a new account. Too many inquiries in a short period of time can sometimes be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties, or overextending yourself by taking on more debt than you can actually repay.

1. Keep credit cards but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will favorably impact your credit score in the long term. If you are having trouble making ends meet, contact your creditors and try to consolidate multiple loans into one monthly payment.

1. Keep balances low on credit cards and other revolving credit. Keeping your account balances below 75% of your available credit may also help your score.

1. Old credit cards that you may not be frequently using can help your credit history… Older credit activity if it’s good, can be viewed as stable and responsible… consider using these cards to a limited extent, always paying off the balances on time, to build-up your credit profile.

1. If you've been a good customer, a lender might agree to simply erase that one late payment from your credit history. You usually have to make the request in writing, and your chances for a "goodwill adjustment" improve based on your record with the company (and the better your credit in general) - it can't hurt to ask.