Raising Your Credit Score

Credit scores with the big three of Experian, Equifax and Trans Union is very important. High credit ratings with them enable loans such as mortgages, and credit cards to be easily applied for and gotten. Extension of credit in today’s society is more important than it is ever been. If a bad credit rating follows there is a few ways to clean it up, and it will not take that long to do it. It all depends on diligence and knowing what to do when it happens.

Know Your Report

The first issue that will need to be resolved is to know exactly what is in the files of all credit reporting agencies that there is an account with. It is easy to obtain a credit report, and even though it might cost a few dollars per report, typically $12.00 a piece, it is absolutely necessary to get the full picture on what is going for credit history, current and past. Past history is necessary to know because some that are paid in full, or that might need to be changed from delinquent to current, will need to be updated by other financial lending companies. Mistakes and delays do happen, so the most current needs to be in the file. Order one without delay, and see what is in the file, and correct issues that need to be corrected.

Owed vs. Available

Another consideration for raising a credit score is how much is owed. As stated a credit score fluctuates from week to week and day to day and the rating factors that are applied to the score depend on a lot of issues. A comparison and judgment value needs to be made on all debts after a report is obtained from the credit scoring and reporting agencies. By making payments on the debts a credit score will change, but how fast it changes, and how much it goes up, depends on other factors like how long the debt has been outstanding, and how much is owed. Of course one credit report might negate a negative credit score on another report, and can make a score rise at a particular time.

This is very true with the facts about using credit cards to help with other bills that they have incurred. Some people will borrow money from a credit card balance to pay off another type of paper loan, such as a car loan or mortgage, and end up maxing out the cards. It can make the credit score look bad because the limits have been reached on one or more card(s). In general all scores from a reporting agency will make a higher credit score and a more positive impact, if only a few cards have small balances, then a lot of cards with high-end balances on them. Consolidating loans from credit cards onto one card can have a negative impact on the credit score too. Again, it looks like that the max has been reached on one, and the credit limit has just been transferred to another account.

Correct Any Mistakes

After getting the credit reports, go over each one with a fine-toothed comb, and check out the information that is listed on each one. Sometimes debt information can sneak in that is not supposed to be in there like other people’s debts, and it can affect the score in the reports. Immediately report it to the credit agency that is listed, and give a quick call to the reporting agency, and tell them what is going on. Write a letter to dispute it, and mail it off quickly. The credit bureau has 30 days to send a challenge to other lending institutions that are reported to clear up the matter on the claim. Remember, that silly claims are usually seen as ones on huge amounts of debt that are in the report for a very long time. Do not use debt complaints as a way to get removal of valid debt. It just will not work. On the other hand if a debt does need to be removed the credit agencies need to know because a positive score will be the result.

Pay On Time

Finally, by paying your bills on time, and keeping credit card balances low will help keep a positive credit card score up. Using these credit tips will help maintain a healthy credit status, and there will no wondering how the score looks at any time. It is still a good idea to request a report at least once a year, just to make sure that all is current and correct.

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