Credit Repair: Raising Credit Score

Things you can do to raise your credit score

Whether you want to buy a car, boat, or a house, chances are you will need to secure a loan. The biggest barrier to getting such financing is a low credit score. Here are some tips you can use to raise your credit score:

Pay your bills on time: Finance companies want to know that you pay your bills on time. Therefore, a good history of paying these bills on time will improve your credit score. If you have had trouble paying your bills on time in the past, start now. A good history of six months to a year are usually enough to raise your score a few points.

Have errors removed: Most credit reports contain errors, so it is in your best interest to learn how to raise your credit score fast using sites like AAACreditGuide when you want to apply for a home loan. Some those errors may be as simple as a father with the same name where credit histories are mixed. Some errors may be as complicated as someone stealing your identification and getting credit in your name. While a simple mix up can be fixed by having companies look at social security numbers and double checking facts, some can be nearly impossible to fix. To prevent credit errors and theft devastating your credit score, you need to check your credit report often and point out any discrepancies immediately. Errors will be harder to have erased after two months than it will be after two years.



Pay or settle legitimate outstanding bills: For those outstanding debts that you may have long forgotten, pay them. If you have a reason why you feel you do not owe the entire bill, call the company and negotiate a settlement. Most companies will take half of the payment and report a "settled account" status to the reporting agencies. When you are negotiating, try to get them report it as "paid" even if you have to pay a higher percentage of your bill. This could mean the difference of quite a few points.

Pay down credit cards: Pay down your credit cards to 50% of your credit limit or less. More importantly, maintain this ratio of credit used to credit available. This makes you look less desperate for credit accounts and shows that you manage your credit responsibly. If you find that you have open credit accounts that you have paid off, do not have them removed from your report. This will help your credit ratio.

Do not apply for unnecessary credit: If you apply for unnecessary credit lines, you will have multiple inquiries on your credit report. This will give the impression that you are wracking up a great deal of credit so you can eventually charge it up and walk away from your obligations. Only apply for credit when you are ready to make your purchase, and then, only if you are sure your credit report is satisfactory. If you are buying a large ticket item and need to compare rates, have the companies pull your credit reports within a week to ten days so all the inquiries count as one.

In conclusion, your credit report needs to show that you pay your bills on time, handle your obligations, and are responsible with your money. Make it a habit of doing these things in the future and you will not have to worry about raising your credit score, as it will already be high.

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