Late payments, bankruptcies,
and other negative items can harm your credit score. The good
news is that there are several ways to improve it. It is easy to
obtain your credit scores via the internet, telephone, or U.S.
Mail. The top three major credit bureaus are Equifax, Experian
and Trans Union, and they do not share information so all three
must be checked for errors that may be negatively affecting your
It can take up to 6 months
to correct an error on a credit report; therefore, consumers
should obtain copies of their credit reports at least 6 months
in advance of making a major purchase like buying a home or
car. That will hopefully allow you enough time to identify and
correct any errors.
Pay Down Credit Card
Balances And Don’t Open a Lot of New Credit Accounts
outstanding debt and teetering on credit card limits, can
negatively affect credit scores. Charging more than you can
afford is not a wise use of credit. Consumers that can
demonstrate their ability to use credit wisely earn the highest
credit card scores. Additionally, rapid account buildup may
make you appear riskier to creditors, especially if you are a
new credit card user. Keep your balances low. A low balance is
often said to be no more than 25% of your available credit
limit. So if your credit card limit is $5000, then you should
only charge that card to as high as $1250 to keep your credit
You only need one or possibly
2 credit cards. Close all open accounts that you don’t use.
Too much available credit can lower your credit score even if
you do not have a current balance.
Pay Bills on Time
Paying bills on time is one
of the simplest and most effective things a consumer can do to
raise their credit scores. Even just one late or missed payment
can dramatically lower a person’s credit score, making it
difficult to obtain loans in the future.
If necessary, setup automatic
withdrawal payments from your bank account or pay
on-line—whatever it takes to make the task of paying bills more
efficient. Because, the longer you pay your bills on time, the
more you will improve your credit scores.
Inform Creditors of Your
Calling your creditors to
discuss possible solutions for your financial difficulties is
the best way to control the amount of damage your financial
difficulties will have on your credit scores. If you
anticipate being late on a bill, call to make arrangements for
when your next payment will be sent. Many times a simple phone
call will delay a creditor from reporting you to the credit
Video: Raise Your Credit Score (Bloomberg
Make Small Payments on
The amount you pay on
accounts is not always as important as the consistency of your
payments. A consistent history of timely payments goes a long
way improving a poor credit score.
Using debit cards from your
bank, or most American Express, cards will not improve your
credit score, since they are considered convenience cards, not
revolving accounts. However, a late payment on an American
Express card can negatively affect a person’s credit card
Video: Raise Your Credit Score FAST with
this Insider Technique
Bankruptcy may seem like an easy—short term—way
out of debt. But, over time it is one of the worst things you can do for your
credit score and it will result in costly high interest rates.
When a home is foreclosed on, a homeowner can
lose their home, and any equity they may have built. Their credit report will be
damaged for several years.
It can take
up to two to three months to improve a credit score. However,
the sooner you can begin to manage your credit, the sooner your
credit scores will begin to improve.
mind that your credit report is not permanent. It is a
reflection of your current credit behavior, and with effort and
determination, it can be repaired--either alone or with the help
of one of many top credit repair companies like ...
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