How To Improve Your Credit Score

A couple of points in your credit score can make a huge difference when you need a home or auto loan. In fact, it can be the determining factor when hunting for your new car. Your creditworthiness will be established by looking at your payment records, debt, length of credit history, types of credit sued and your new credit.

Each one of these items can be improved by following our easy tips:

Check your credit report periodically and correct any mistakes.
Negative information remains on your record for 7 years (except for bankruptcy that stays for 10), after that, it should be removed. Remember, you are entitled to receive one free online credit report per year.

Dispute negative information in your credit report.
Even if the negative information is accurate, there are ways to have negative entries deleted. If a past-due account has been paid off or kept up-to-date for at least a year, you can request to have it removed if there's a reasonable explanation. The credit reporting agency can still say no, but it's worth a try.

Request only credit you really need.
Inquiries made by creditors are interpreted as if you were looking for many sources of credit, which can lower your score dramatically. If you're comparison-shopping for credit, try to make all inquiries in a short period of time - that way the software will understand you're looking for a single loan.

Pay down debt.
Your credit line is a set amount that different entities think you're good for. The more you take up, the less available money for new credit.

Pay your bills on time.
If unexpected circumstances keep you from paying them, contact your creditors as soon as possible. Talking and working out a payment arrangement with a legitimate credit counselor can save your credit reputation.

If you're really stuck, get help.
Several services and law firms can help you with counseling or navigating the processes to repair your credit, such as Lexington Law Firm or Fowler and Fowler.