The Truth About Increasing Your Credit Score And What Really Works

Begin by obtaining a copy of your three credit reports. The three credit bureaus are Equifax, Trans-Union and Experian. These are separate companies and each of them report independently so they may have different information. You should evaluate all three reports for errors and inaccuracies.

If you find mistakes, follow the proper steps to have these errors removed. Instructions can be found on each bureaus website. By law, it is up to the credit bureau to prove that the negative marks are legitimate and accurate. In addition, the credit bureaus are required to remove the inaccuracies within 30 days. Removing these inaccurate reports will help increase your credit score quickly.

Submit letters explaining why you may have hit a temporary bump in the road with your credit history. If you had a temporary job loss or incurred unexpected expenses that caused you to fall behind short term, sending a letter of explanation can help your credit score also. The bureaus are required to attach these to your credit report.

Always pay your bills on time because your credit history accounts for 35 percent of your credit score. If and when you are able to, have payments automatically deducted from your checking or savings account. This will prevent you from allowing due dates to accidentally slip your mind and will assure that your bills are always paid on time.

Calculate your debt ratio. Your debt ratio is your outstanding debt compared to the available credit you have. This debt ratio accounts for 30 percent of your total credit score. Working to keep your available credit at 70 percent or better can help to increase your credit score.

Always try to pay more than the minimum balance on your credit cards due each month. This will help assure that you maintain a lower debt ratio. Another tip, where you can, pay off credit cards and have the accounts closed. Be sure to contact the company and ask them to close the account rather than simply cutting the cards up so that you do not use them. This too will increase your available credit and raise your credit score.

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