How Can I Increase My Credit Score? Millions of consumers throughout the U.S. contend with the effects of having poor credit. Some are turned down for credit cards or vehicle loans, others find out their applications for mortgage refinancing have been rejected. If you are dealing with the limitations that can result from having poor credit, you may already know your credit reports are in need of repair. Today, understanding how to fix your credit rating doesnt have to be frustrating or stressful, thanks the wealth of financial resources available to consumers. The first step in improving your credit is to know what is listed on your credit reports. You can do this by ordering free copies of your credit reports from AnnualCreditReport or by calling 1-877-322-8228. This service is provided by Equifax, Experian, and TransUnion, the countrys three largest consumer credit reporting agencies that maintain and distribute your credit report. The Fair Credit Reporting Act entitles you to receive, by request, a free copy of your credit report from each of the credit bureaus once every 12 months. Tips to Increase Your Credit Credit scores are an important tool used by lenders to determine the probability a borrower will repay his or her loan. Fortunately , this rating is not set in stone. there are many things you may be able to do to increase your credit score. Pay your bills on time - Payment history makes up 35 percent of your credit score. A period of not making timely payments will quickly drop your score but since the impact of a late payment diminishes over time, concentrating on making all payments on time going forward will get your score moving in the right direction. Contact your creditors if you are having a hard time making payments - If you foresee that you will be unable to keep up to date on loan or credit card payments, you may be able to make arrangements with your creditors such as extending the loan period that will help you get back on top of things. You could end up paying more, but if it keeps you from getting further and further behind, it will be worth it for your long term finances and for your credit score. Try to keep low balances on your credit cards - Outstanding debt accounts for 30 percent of your credit score. The closer you are to reaching the limit on your credit cards, the less stable your finances appear. Keeping credit card balances below 30 percent of the limit will make your credit utilization ratio look better. Avoid shifting your debt between credit cards - Transferring debts to a lower interest rate credit card is a good strategy when trying to pay down debt, but a history of transferring balances between cards makes it look like you are robbing Peter to pay Paul instead of making your monthly payments. Carefully study credit offers before accepting them - Some loans, including department store cards, are loaded with fine print and other strings attached that can end up causing big problems down the road. For example, some no payment, no interest financing programs offered by retailers include interest rates that can skyrocket if you are late on a single payment and clauses where you may still be responsible for making payments on interest accrued during the no interest period. Use your credit cards responsibly - Keeping balances below 30 percent is a start, but you should also be careful to keep the number of cards you have in check, make all payments on time, occasionally use older cards, etc. For the most part, best practices for all credit accounts apply to credit cards as well but given how frequently people let their credit card spending get out of control, responsibly using credit cards deserves special attention. Look into credit repair services - For people who need additional assistance addressing their bad credit, another excellent resource for consumers are professional credit repair services. Professionals can provide their valuable expertise on important matters like legally disputing the questionable negative listings on your credit report and specific steps you may be able to take to make the most of your credit. More information about credit and steps people can take to clean bad credit can be found by visiting Lexington Laws Credit Education resources. More information about Lexington Law can be found at LexingtonLaw
Posted on: Sat, 16 Nov 2013 22:58:59 +0000
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