Repair My Credit Score
In today’s economy it’s more critical
than ever to have a good credit score, but millions of consumers simply don’t and often
find themselves asking how can I repair my credit score? In order to repair your credit score you need
to repair your credit report. The items listed on your credit report, and
their status, is what makes up your credit score. Repair my credit score – step 1: stop doing
the things that are causing your score to be low. Making late payments, or skipping payments,
are some of the worst things you can do to your score. Just one late payment could drop your score
by 100 points, which would take a long time to repair.
Maxing out credit cards is another bad habit
that will trash your score; even if you pay off your balance at the end of the billing
cycle. You never know when your creditor reports
to the bureaus. If an account shows your balance to be 100%
of the available limit, the credit scoring formula will automatically generate a lower
score. And once that low credit score has been assigned,
it can take a long time to repair it.
Repair my credit score – step 2: use credit,
but do so responsibly. Make affordable purchases with your credit
card and pay down the balance each month. Do everything you can to keep your balance
below 30% of your available credit limit. Get your balance down to 10% and you’ll
see greater improvements. Doing this demonstrates discipline and control
and the credit scoring formula will reward you with a higher score. Repair my credit score – step 3: keep accounts
open and active while working on improving your credit. Each account has a history which represents
35% of your score. You should also focus on using older credit
cards, as length of credit history makes up 15% of your score. Don’t let your creditor close your account
due to inactivity; an account listed as ‘closed by grantor” listing lowers your credit score
and gives you more damage to repair.Repair my credit score – step 4: have a healthy
mix of different types of credit. Have at least one installment and two revolving
accounts. Once you have those, be careful about applying
for more new credit. Too much available credit is seen as risky
behavior by potential lenders.
Plus, if you wait until after you’ve raised
your credit score to apply for new loans, you’ll qualify for better rates; which will
save you lots of money in the long run. Repair my credit score – step 5: keep an
eye on your credit reports. Make sure all of your positive behaviors are
being reported and that everything on your report is accurate. But don’t be surprised if you find mistakes;
they are quite common. Repair my credit score – step 6: fix mistakes. If you come across mistakes, you need to notify
the bureaus, in writing, and request their correction. Disputing errors can be a tedious and frustrating
process, but a necessary one if you want to repair your credit report and raise your scores.(captioned
by http://www.LegacyLegal.com)
