| There are millions of people in the U.S. today struggling | | | | Paying off an older overdue balance before applying |
| to get by with lousy credit. If you are one of them, and | | | | for a home loan will hurt your rating by making that |
| have been looking for ways to improve your score, | | | | balance a current collection. This will do short term |
| the following information could prove beneficial to you. | | | | damage to your score. |
| Each of us is permitted one free credit report per | | | | The balance you carry on credit cards can have it's |
| year. You can use that free report to find out what is | | | | effect against your score as well. Very high balances |
| causing your score to be so low. Its also an | | | | and maxed out cards lower your score significantly. |
| opportunity to determine if there are an mistakes on | | | | Even if you always make the payments on time. |
| your report so you can take steps to have them fixed | | | | Consistently using only half your available balance will |
| should you find any. | | | | help raise your score. |
| Be sure that any debts you have paid off are | | | | Beacon scores are also affected by how long you've |
| reflected on your report. For some reason many | | | | had a line of credit. Say for instance you got a charge |
| companies don't report that last payment, so your | | | | card in college. If you still have that old card and have |
| report looks as though you still owe money on an | | | | consistently paid it, this helps your rating. The opposite |
| account that has been paid in full. | | | | holds true as well. New cards, recent loans, and such |
| You should be aware that each time your report gets | | | | have a negative impact on scores until enough |
| looked at by a creditor, it shows. Several inquiries will | | | | payments have been made to establish that you are |
| damage your rating and reduce your score. Be | | | | responsible about paying. |
| exceedingly particular about who you let pull your | | | | So to repair your score the first step is to check your |
| report. | | | | report, noting any mistakes or duplicate reporting so |
| Collection companies can do terrible damage to one's | | | | you can have them removed. Remember ignoring the |
| beacon score. They often list the same past due | | | | problem will not make it go away. The first step is |
| accounts repeatedly making it appear that you've | | | | always action. Inaction will get you nowhere. |
| neglected several accounts when it is really just one. | | | | |