| 1. Get Free Copies of Your Credit Report | | | | collection agency, or whether you have ever declared |
| It is very important that you make sure the information | | | | bankruptcy, all show up in your history. These |
| is correct. | | | | negatives make it hard to improve credit scores, but it |
| There is only 1 authorized online source for a free | | | | can be done. |
| credit report. You need to go to Federal law, says you | | | | - How much outstanding debt do you have? The most |
| can get a free report from each of the three national | | | | popular scoring models look at how much debt you |
| credit reporting companies every year. | | | | have and what your limits are. If you don't have at |
| Mail or Phone | | | | least 60% of your credit line available, it is very likely to |
| If you don't want to get your report online, you can call | | | | lower your scores. |
| 877-322-8228. You can also complete the Annual | | | | - How much history do you have? If you haven't had |
| Report Request Form and mail it to: | | | | credit for very long it might lower your score. Even |
| Annual Report Request Service | | | | with a short credit history you can improve credit |
| P.O. Box 105281, | | | | scores with other factors like making timely payments |
| Atlanta, GA 30348-5281. | | | | and keeping low balances. |
| 2. You Must Pay Your Bills On Time | | | | - When was the last time applied for new credit? |
| Paying your bills on time is one of the most important | | | | Applying for too many new accounts can have a |
| things you can do to improve credit scores. Make sure | | | | negative affect on your credit score. There are |
| you pay your bills by the due date. It is very convenient | | | | exceptions to this however. Requesting a copy of |
| to set up automatic payments from your bank | | | | your own credit report does not have any effect on |
| account, but make sure they arrive a day early since | | | | your credit. If you use credit monitoring services, or the |
| the clock starts at midnight. Make sure you have | | | | credit reporting agencies are looking at credit reports |
| enough money in your account to avoid overdraft | | | | to make prescreened credit offers, then these inquiries |
| fees. If you are going to be late, you will pay a late fee | | | | also have no effect since they are not counted as an |
| to the credit card company, but generally if you are | | | | application for credit. |
| under 30 days late, it will still report as current on your | | | | - How many credit accounts do you have and what |
| credit report. | | | | types of credit are they? Most of the credit-scoring |
| 3.How Your Score Is Determined | | | | models also take into account how many credit |
| Your credit score is complicated and actually a trade | | | | accounts you have and what type of credit they are. |
| secret, but it is normal based on the following questions | | | | To improve credit scores a mix of credit card debt |
| and what your answers are: | | | | and installment loans are helpful. If you have too many |
| - Are your bills paid on time? How you answer this | | | | finance company accounts or too many credit cards |
| question is very important. Late payments, accounts | | | | might hurt your score. |
| that have been charged off and referred to a | | | | |