How to raise your credit score is an often asked question. Many people with less-than-perfect credit may feel like they are in a hopeless situation with no answers. But, indeed, there is hope and I’ll help you to find the answers on how to raise your credit score. It will take a little work on your part but the effort will be worth it as you see your credit scores improving.
How to Raise Your Credit Score begins with Knowing the Facts
- Check your credit reports with each of the three main credit reporting agencies. You are entitled to a free report from Trans Union, Equifax and Experian every 12 months. You can obtain the
free credit reports from AnnualCreditReport.com. Review the information in your reports, checking for any inaccuracies. Don’t just look for large errors. Small mistakes matter too. Something as small as an inaccurate address (current or previous) can decrease your scores.
- Request removal of any mistakes you find in your credit records. File a dispute in writing and keep copies of all correspondence. Often, the credit reporting agencies will remove any inaccuracies without a hassle. Sometimes though, you will encounter a lazy employee who doesn’t want to bother verifying the information and simply says the information has been verified. If this happens, send another letter, including any proof available to prove your case. I recommend sending this letter by certified mail with a return receipt. This may be all that is necessary, but if the agency still will not remove the error, you can try contacting the original creditor if the mistake involves account misinformation, such as, reporting an account open when it is paid or reporting an account as late when it was not.
- Make sure your credit files do not list accounts as open and with a balance when they are actually closed and balance-free. It’s not unusual for a creditor to neglect to report an account as paid after the last payment has been posted. Sometimes you need to nudge them. Since debt-to-income ratio can account for 30% of your credit score, you want to make sure no balance is showing that is actually paid-off.
How to Raise Your Credit Score Involves Being Responsible
- Always pay your bills on time. Being consistent in making timely payments will help to raise your credit score.
- Try to pay off your credit card balances in full each month. This will help to keep your debt-to-income ratio in check.
- Ask your credit card issuer to raise your available credit limit, but do not utilize it. Having the higher available credit line will lower your utilization and help increase your credit score.
- Avoid opening up any new lines of credit. Each time you apply for new credit, your score dips. Opening new credit card accounts also decreases the average age of your accounts. Credit scores rise as accounts age. According to the Better Business Bureau, the length of your credit history accounts for 15 percent of your score.
As indicated above, “how to raise your credit score” does not have to be an impossible task. Admittedly, it is not a quick overnight fix to improve your credit rating but it isn’t that difficult either. Improving your credit score involves good choices, careful tactics, responsible behavior and most of all patience. But, with time and diligence, it will happen and you will eventually not be asking “how to raise your credit score”; Instead you will be saying, “look how much I have improved my credit score.”
Return to Debt Relief Homepage
Related posts:
- What Affects Your Credit Score Like most people, you probably have a pretty good idea...
- Credit Scores Credit scores – most adults have one, few understand them. ...
- Credit Score Range What is a Credit Score Range? The credit score range...
Tagged with: credit reports • credit score • credit scores
Filed under: Credit Score Info
Like this post? Subscribe to my RSS feed and get loads more!
Leave a Reply