How to Improve Your Credit Score!
Author: Carey Snow
Your credit scores change when new information is reported to the credit bureaus by your creditors. So your scores will improve over time when you manage your credit responsibly. You should obtain your credit report and review it closely. Look for errors and possible fraud, such as identity theft. Credit bureaus can fix these problems if you have the records to back up your claims. You may also discover that positive information that could raise your score has been omitted, for instance, the payment record or credit limit on one of your credit cards.
The Consumer Federation of America reviewed more than 500,000 credit files in 2002 and found that in one out of three cases, credit scores from the three agencies varied by 50 points or more. Advocacy groups say this could only have resulted from errors in the files.
Your credit score doesn’t have to be perfect but it does have to be very good to obtain credit in today’s world! Your credit report will tell you how close or how far you are from having very good credit.
The best way to improve your credit score is to manage your credit wisely and pay your bills on time. The most important thing you can do is pay your mortgage on time every month! Installment loans, where you borrow a set amount to buy new furniture or appliances, are important too as they are given more weight than credit cards.
Keep your borrowing well below your credit limits because your FICO score will be lower if you are maxed out on your credit cards. You should also pay more than the minimum payment on your credit card. A large number of credit cards will also lower your credit score. Don’t apply for several credit cards at one time as it makes lenders nervous and will lower your FICO score.
Home ownership will raise your credit score but moving frequently will lower it. Closing credit accounts is not recommended since this can also lower your score, but you want to balance this with freeing up your available credit as much as possible.
The best place to start improving your credit score is to become current and stay current on every billing cycle. Once you are current, start working on the areas that count the most. Being current on your payments improves your payment history, which makes up 35% of your score. Then, you want to pay down your loans to reduce the amounts owed which accounts for about 30% of your credit score.
These simple steps can help you repair your credit score and help you raise it over time. Removing collection accounts can have a dramatic effect on your credit score. Smart money management, however, is the absolute key towards getting a great score. Over time, this effort will pay you back with lower interest rates and a greater ability to get the loans you need. Watch for future articles on ways to improve your credit score at http://MyOptInPage2.com/?pid=4005929!
About the Author:
Carey Snow is a real estate investor and credit repair business owner who is sharing his credit knowledge and expertise to enlighten consumers about credit and assist them in repairing and maintaining their credit.
Article Source: http://www.articlesbase.com/credit-articles/how-to-improve-your-credit-score-786832
Tags: advocacy groups, consumer federation of america, credit accounts, credit bureaus, credit cards, Credit Report, credit score, credit scores, creditors, fico score, fraud, home ownership, identity theft, installment loans, Lenders, minimum payment, positive information
