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Improve Your Credit in Four Easy Steps
Damaging your credit score probably happened over a period
of time and you had no idea how your bad behavior was affecting
your credit. Then came the day you wanted to buy a new home
or car, or even apply for a particular job, and a credit check
revealed your credit was poor and you were a high credit risk.
As a result, most businesses don’t want to give you
credit because you are deemed uncreditworthy. However, while
this may seem hopeless you can remove yourself from this situation
and improve your credit rapidly with three easy steps.
Credit Repair Tip #1 Make Your Payments on Time
Making your payments on time is one of the most important
things you can do to improve your credit. And while the exact
formula the credit bureaus use to calculate the FICO score
are unavailable, they do inform individuals that making payments
on time weighs heavily in the equation. So, even if you can’t
pay the full balance off every month make sure you make a
payment on time every time. If you don’t you will not
only further damage your credit but will also increase your
debt due to late payment charges.
Credit Repair Tip #2 Reduce Your Debt
If your credit cards are all maxed out then your available
credit is very low if it exists at all. As a result, your
credit score will be lowered because you have used up almost
all of your available credit lines. To improve your credit
start reducing your credit card debt and increasing the numbers
between your credit limit and what you actually owe.
Credit Repair Tip #3 Don’t Close Old Accounts
If you pay off a credit card and decide you don’t want
to use it anymore due to the interest rate or whatever reasons
don’t close the account completely. The reason for this
is established credit accounts on your credit report increase
your score as well as zero balances. So, keep the account
open and the balance at zero and your credit score will benefit.
Credit Repair Tip #4 Request Copy of Credit Report
Your credit report, which is created by three different credit
bureaus, determines your credit score. As a result, it is
important for you to regularly check the information on your
credit report to ensure all is accurate. If not, make sure
to request the inaccurate information is removed. Once removed
your credit score will increase.
There are of course many other credit improving actions you
can take, but require a bit more effort and time. The most
important thing you can do is take a look at your credit report,
make sure all information is correct, dispute any information
that is not accurate, make your payments on time and reduce
your credit card debt to credit card limit ratio. By doing
this you will be developing good credit habits and over time
your credit will increase accordingly. Also, keep in mind
that negative information can stay on your credit report for
up to seven years, so the faster you get your credit under
control the faster you will be able to enjoy a high credit
score.
See: Improving
Your Credit is Easier Than You Thought
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