Here are 5 tips that you can use to improve your credit score:
1. Check the accuracy of your credit report
Did you know that by law, you have the right to obtain a FREE credit report from each of the three national credit reporting companies every 12 months?
To have the best credit score possible, you must make sure that your credit report does not contain errors. This is your responsibility!
To get your Free Credit Report:
- Go to Annual Credit Report and follow the instructions.
- Or, you can call 1-877-322-8228 to request that your report be mailed to you.
- Or, you can also complete the Annual Credit Report Request form and mail in your request.
2. Pay your bills on time
Although there are several factors in determining a credit score, one of the most important is making regular, on-time montly payments. Most banks have automatic online payment, so take advantage of the service!
3. Understand how your credit score is determined
Basically, your credit score is base on how you answer these five questions:
- Do you pay your bills on time? If you are consistently late paying your bills, your credit score will suffer.
- How much outstanding debt do you have? If you have too much outstanding debt compared to your ability to repay (based on income, debt limits, etc.) then your score will suffer.
- Have you applied for several new accounts recently? Filling out several store card applications or trying to establish new credit with several charge cards in looked on as a negative for your credit report.
- How long is your credit history? Even thought you may never have had bad credit because you have never really had a loan or credit card, this is considered a negative on your credit report. Try to establish one or at the most, two accounts and pay them on time and possibly pay them off in a few months.
- What types of credit accounts do you have? Too many finance companies or high interest credit cards may hurt your score. On the other hand, a mix of installment loans (auto, home, etc.) and a credit card or two is much better for your score.
For more information, check out the Federal Trade Commission's website at Facts for Consumers.
4. Take the time and effort to legally improve your credit score
It is well worth the effort to improve your credit report and score!
Click on this link for step-by-step instructions on how to repair your credit report.
5. BEWARE OF CREDIT REPAIR SCAMS!
There might be a few legitimate credit repair companies, but I haven't ever found one!
You can find all you need to know about how to legally correct or repair your credit report at the FTC's site "Credit Repair: How to Help Yourself"
If you have some questions or need some more information, our Solutions Specialists are here to help. Give us a call!
OR, Click on the link below for a FREE PERONALIZED DEBT ANALYSIS!
photo by: kanonn