How to Improve your Credit Score?
Well, first things first. No matter what your uncle Fred says, improving your credit score can't and won't be done by tomorrow afternoon. However, to assuage frustration, timely improvement can be done if you follow some of these bread crumb steps. Increasing your FICO credit scores will take time and a diligent effort on your part because the facts are that the only true and long-lasting solution is to pay down your debt and eliminate as much of the negative information on your credit report.
Steps on How to Improve your Credit Score
#1- You need to know what's on your credit reports. Contact Experian, Equifax, and Transunion and get a current report on your credit history. It's not enough to know your credit scores, you need to know what the damaging problems are: charge offs, late payments, collections, and what creditor put them on the reports. You can't play the game if you don't know the players.
#2 - Study the reports to see what negative comments are affecting your FICO credit scores. Write down any valid errors you find plus the names of the creditor who filed the report.
#3 - Concentrate on reducing your debt to credit limit ratio. Example: If a credit card limit is $2,000 and you owe $1,889, this will create a negative credit reading. Ergo, if you are financially able, try to reduce the balance owed on as many of the higher limit debts as possible. Further, try to drop the loan balances to less than 80 percent on your credit cards. 35 percent is better and this alone will raise your credit scores by at least 40 plus points within 30 days.
#4 - After reviewing your reports, make a list of any negative items you dispute and can prove in writing. While you're at it, validate any debts that appear to be suspicious. Also, most creditors will be anxious to work with you to make payments or lower interest rates; even, on occasion, remove late payments and any late fees, if you bring your debt current. Look, folks, what can a phone call hurt. Contacting a creditor with explanations could be worth its weight in gold. Good things can happen.
#5 - Things to dispute to improve your credit score. Any item on the reports that were included in your bankruptcy. Bad credit more than seven years still hanging around that creates negativity. 10 years if it's a BK.
Late payments, collections and anything else that is not yours or too old.
#6 - One of the best ways to improve your credit rating and score is using some common sense. If you have two or three past due bills, pay them and keep them that way. Pay your bills on time. It's common knowledge in the credit business that late payments play a large part in driving down your credit score. If you come upon hard times, contact the creditor, explain the situation and work something out so you can keep that negative mark from popping up in your credit history.
#7 - Manage any new credit wisely. Keep your debt to a minimum. Don't close unused accounts because someone told you a zero debt balance works in your favor. Finally, ordering your own credit reports does not in any way affect your credit scores.