| It's 2009! A new year means a fresh start, and is a | | | | damages your score. This includes but is not limited to |
| perfect opportunity to improve your credit score. As a | | | | collections, late pays, repossessions, charge-offs, |
| result of the sub-prime lending crisis, lenders are | | | | bankruptcy, and judgments. |
| demanding a higher score for approval. | | | | About a quarter of all reports have an error that is |
| That means that it is more important than ever to | | | | serious enough to keep a consumer from receiving |
| focus on increasing your score. First, it's important that | | | | approval. And, another large amount of reports contain |
| you understand how your score is calculated. Your | | | | mistakes that force a consumer to pay higher interest |
| report contains data including your payment history, | | | | rates on big ticket items like mortgages or car loans. |
| debt total, and utilization ratio. | | | | If you improve your rating, you'll save money, time and |
| This information is strategically placed in a | | | | embarrassment. Errors can end up on your report for |
| mathematical formula, and then calculated to generate | | | | numerous reasons, including: mistaken identities, identity |
| your rating. The determined number is a highly | | | | theft, and administrative mistakes. |
| accurate prediction of how likely you are to pay your | | | | Regardless of the reason, if you want to raise your |
| bills. | | | | score, you must dispute any errors you find. When you |
| The highest possible score is 850 and the lowest is | | | | find an error, you should write a letter to the top |
| 300. The average American has a score somewhere | | | | bureaus and ask them to investigate the mistake. |
| between 600 and 800. To really benefit, you must | | | | Thanks to the unstable economic times, it's more |
| increase your rating so it is at least in the average | | | | important than ever to raise your score. |
| range. | | | | By taking the steps listed above, you'll be on your way |
| The next and perhaps most important step is to | | | | to a stellar rating, and a better life. |
| increasing your score is identifying information that | | | | |