Things You Can Do To Improve Your Credit Score

2009 December 30

A low credit score can impact your ability to obtain a home loan or auto loan. Your blemished credit is both stressful and costly. As hopeless as the situation might seem, bad credit doesn’t last forever. Fortunately, there are steps you can take to immediately improve your credit score.

Put Your Credit Cards Away

Stop using your credit cards. In a bad credit situation, the worst things you can do is continue accumulating debt by making credit card purchases.

Get a Copy of Your Credit Report

Before creating a plan to raise a low credit score, obtain a copy of your credit report. Order a copy of your credit report from each of the three major credit bureaus to find out which accounts need work and which are just fine. Visit AnnualCreditReport.com for a free credit report.

Fix Errors In Your Credit Report

Unfamiliar accounts and reporting errors can appear on your credit report. These remarks reduce your score. If your credit report contains incorrect information, write a dispute letter and report all inaccuracies to the credit bureaus. Your credit report will include information about disputing inaccurate information with the credit bureaus. By law, the bureaus have to investigate complaints, and fix reporting errors.

Start Paying Your Bills On Time

To quickly improve your credit score, pay your bills before the due dates each month. Sign up for automatic billpay if you have difficulty keeping track of bills. You will have to start paying off your debts to improve your credit situation.

Get Current on Delinquent Accounts

Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit. Credit judgments and collections accounts can damage your credit rating. And since these remarks remain on your report for up to 7 years, it can be difficult to obtain credit. Make plans to pay off the balances and settle the accounts.

Avoid Applying For More Credit or Loans

You should avoid making any more applications for credit. Creditors will likely turn down your request and the applications will only decrease your credit score.

Keep Credit Cards Open

You might be tempted to close out credit card accounts. Before you close any account make sure it won’t negatively affect your credit. You might get penalize for too many closed accounts.

Use Credit Counseling Agency

Consumer credit counseling agencies are available to assist you. Look for a non-profit. You gain more information and the personal support from a credit professional agency. Locate a credit counseling agency in your area through the National Foundation for Credit Counseling. 1-800-388-2227

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