Things You'll Need:
- Copy of your credit bureau report
- Copy of your credit score
- Computer with Internet Connection
- Web Browser
- Printer
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Step 1
Read through your credit report. By understanding exactly what your personal credit report contains, you will be better prepared to take the steps necessary to raise your credit score.
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Step 2
Make all of your payments on time. Even if you have some late pays on your credit report, if you strive to prevent any future late payments, your credit score will go up. As more time passes between your late payment and your current payment, the effect that the late pay has on your score lessens.
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Step 3
Maintain available credit on your revolving accounts. If you max out all of your credit cards, this will affect your credit score negatively. If you leave available credit, this will help your score. Although credit reporting agencies do not release their formula information, the more available credit you leave, typically, the better the effect on your score.
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Step 4
Reduce the amount of credit inquiries you make. If you apply for credit often, this will lower your credit score as some lenders see it as a sign of risk. Credit inquiries remain on your credit bureau report for up to two years from the time of inquiry.
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Step 5
Keep your oldest account active. If your goal is to increase your credit score, do not close your oldest credit account even if it has a $0 balance. The length of your credit history is determined by this account and if you close it, you can expect your credit score to go down.
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Step 6
Maintain a diversified credit profile. If your credit profile consists solely of revolving charge accounts, your credit score will be lower than if you have installment loans and other non-revolving accounts reporting to your credit bureau.
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Step 7
Dispute any inaccuracies that you find in your credit report. Studies have shown that more than 75% of consumer’s credit bureau reports contain one or more errors. Some of these errors can have a significant impact on your credit score. By removing the incorrect information, your score will increase.
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Step 8
Check your credit report annually. By keeping on top of the information included in your credit report, you will ensure that your credit score is the highest it can possibly be.
