| How Can I Fix My Credit Score? | | | | valid in order for it to remain on file. Also keep an eye |
| Many, many folks have found that their credit scores | | | | out for duplicate reports of the same negative item - |
| are less-than-appealing - especially in such a weak | | | | this is a common mistake that occurs when debt is |
| economy with so many layoffs and company | | | | "sold" to collection agencies who may resell the debt |
| restructuring efforts that have left tons of people | | | | to other companies. |
| jobless. Regrettably, it is a heck of a lot easier to lower | | | | "Fix My Credit Score" Tip #2: Make Timely Payments |
| your credit score than it is to increase it. Credit scores | | | | The most important thing that you can do to be |
| are measured on the Fair Isaac and Co scale or FICO | | | | regarded as a responsible borrower (and to keep your |
| with the majority of lenders. Your FICO score is used | | | | credit score looking good) is to make timely payments. |
| to determine your creditworthiness or lack thereof. | | | | Thirty-five percent of your FICO score is based on |
| This score is compiled based on information that is | | | | your payment history (yes, more than a third). Pay on |
| reported about you and your borrowing habits to the | | | | time, each and every time that your payments are |
| three major credit reporting bureaus (Experian, Trans | | | | due. |
| Union, and Equifax). Having a bad or damaged credit | | | | "Fix My Credit Score" Tip #3: Pay Down Debt |
| file makes your FICO score lower, which results in | | | | A whopping thirty percent of your FICO score is |
| everything from denial of credit to denial of | | | | based on the amount you owe. A simple fix that can |
| employment. Let's look at ways that you can increase | | | | raise your credit score: pay down your credit cards |
| this all important FICO score: | | | | and other installment-type loans. This doesn't mean |
| "Fix My Credit Score" Tip #1: Verify the Accuracy of | | | | moving the debt from one card to another, but actually |
| Your Credit Report | | | | eliminating it. Make small steps - like an extra $50 per |
| It is crucial that the information being used to calculate | | | | month, if you cannot afford to pay a big chunk of your |
| your credit score is factual and up-to-date. All three of | | | | debt off at once. |
| the above-mentioned bureaus may have a different | | | | "Fix My Credit Score" Tip #4: Keep Your Oldest |
| accounting of your borrowing behavior, so it is | | | | Accounts Open |
| important that you pull your credit report and score | | | | One of the biggest mistakes that can be made in |
| from each one. You can receive a free copy of your | | | | regards to credit is closing old accounts. Newer |
| credit report once each year under federal law; you | | | | accounts lower your score; older accounts raise the |
| will be charged for your score, however. Look your | | | | "average length" of your credit history - which is a |
| three reports over carefully. Can you dispute any of | | | | good thing. Keep your older accounts in good standing, |
| the information that is contained in your credit file? Do | | | | and don't run more than a thirty percent balance on |
| you recognize any discrepancies and errors? Even | | | | them as compared to the available credit you have. |
| simple items like a late payment that you actually | | | | For example, if your Visa card has a $10,000 limit, run |
| made on time should be reported and disputed to the | | | | no greater than a 30% balance on the card at any |
| bureau holding the erroneous record. In many | | | | time. |
| instances, the creditor will need to prove that a debt is | | | | |