How to Improve Your Credit Score

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By chasingthebull
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In today's environment, access to credit is a necessity. If you have bad credit any money that you borrow will be more expensive and more difficult to obtain. There are a few simple ways to improve your credit score.

Difficulty: Moderate

Instructions

Things You'll Need:

computer with internet access

Step 1

Determine Your Credit Status - Once a year you are entitled to receive a free credit report from each of the 3 major reporting agencies (Equifax, Transunion, and Experian). Go online and get a free report from one of these agencies. Save the other free reports for later in the year.
Step 2

Challenge Incorrect or Misleading Information Found in Your Report - Errors occur everyday. You should not have to suffer due to mistakes made by uniformed or unscrupulous businesses. Once you challenge the information, the reporting company has 30 days to prove the information is correct or the credit agency is required to remove the information.
Step 3

Pay Every Bill On Time - This is a key ingredient that you need to do to improve your credit score. Get current on your bills and stay current.
Step 4

Pay High Balance Cards First - Points are subtracted from your credit score anytime you charge more than 50% of the available credit on any card. Get these balances down and see a quick increase in your credit score.
Step 5

Leave Zero Balance Accounts Open - As discussed in step 4, your credit score is calculated as the percentage of credit you have available versus amount of credit you are using. If you close some of your accounts, you will owe a higher percentage of the total, resulting in a lower credit score.
Step 6

Obtain Another Free Credit Report - After 3 to 4 months, get your second FREE credit report from one of the agencies that you did not use in Step One. Analyze this report and ensure that all the information is correct and updated.
Step 7

Repeat Step One Through Six - Following these simple steps will help you to improve your credit score.

Comments

theycallmecheap said

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on 6/7/2009 I especially like the tip on pulling a free credit report every three months. Free credit reports are also available on AnnualCreditReport.com.

Alisiane said

on 10/8/2008 This is such good info. There are so many companies who claim they'll clean up your credit for you for some astronomical fee, when all they are doing are the things listed here which you can do for yourself.