When was the last time you actually called the number on the back of your credit card and spoke with a person?  It seems as the internet is getting more and more useful, actual conversations are happening less and less.  This is wonderful for the banks, but not always for the consumer.  Here's why scheduling an actual conversation with you credit card company twice a year can save you money and improve your credit.

As you probably know, your FICO score is an assessment of risk.  The higher the number, the less risky you appear to banks and lenders.  Part of the calculation done by the three companies that produce your FICO score involves your credit limits.  Borrowers with higher credit limits are looked at as being less risky than those with lower credit limits.  So how do you increase your credit limits?  Just ask.  Call your credit card company and ask if you are approved for any credit limit increases.  Then ask them how often it can be increased - chances are they'll say call back every six months.  (Do not ‘Apply' for an increased limit - that's different.  Just ask.)

Now that your credit limit has been increased it doesn't mean you should go out and charge it up.  One of the most common reasons borrowers get dinged on their credit is because the proportion of balances to credit limits is too high.  Keeping your balances under 50% of your credit limit is ideal.

Last but not least, for those of you with balances on your credit cards, ask your company if there are any promotional rates available.  They would rather have you stay with them, than jump to a new company that offered you a lower rate through the mail.  And, as far as your FICO is concerned, the longer you stick with a company, the better.  So call your current card and ask for a lower rate - trust me - it's like found money!

These simple steps will indeed improve your credit.  However, one HUGE factor is TIME.  So if you know you are in the market for a house, act now!  Doing this right before you start shopping may not be as beneficial.  So in conclusion the easiest way to improve your credit is...

1.  Ask for an increased credit limit
2.  Ask for a reduction in your interest rate
3.  Keep your balances below 50% of your available credit limit