Increasing Your Credit Score

Over 30 million Americans have less than perfectinformation is accurate. If something is wrong, you
credit report ratings. There are a lot of consumers outneed to take the time to correct the information. Once
there looking to increase their credit scores. You caneverything is correct, you can start improving your
tell this simply by observing how many advertisementsrating.
there are out there for quick and easy credit repair.The number one thing that will improve your credit
These companies are hoping that you are looking forscore is paying all your bills on time. This accounts for
a quick fix to your problems.up to 35% of your credit score. Your recent payment
But there is no quick way to change your credit report.history can have more effect on your score than your
If it is accurate, then you can't remove the negative. Nopast history. This means that if you pay all your
company can repair your credit rating simply by youpayments on time, you can improve your score in as
paying them.little as a year. This is the easiest way to get a higher
The rules are the same for everyone. You simplycredit score.
have to understand what makes up your credit rating.It goes both ways. If you miss a couple of payments,
Your credit score is a number between 300 and 850your score will go down. Even those with perfect
that shows your credit worthiness. If you have a lowrecords can see their score drastically drop if they
score, you are at high risk for defaulting on a loan. Ifmiss a few payments. Many credit card companies will
you have a high score, chances are you won't default.use what is on your report to raise your interest rate.
Your lenders, landlords, insurance companies andSo you don't have to miss a payment to them, just to
others use your credit score to determine whether oranyone who reports to the credit reporting agencies.
not to do business with you.You have to make your payments on time.
You should start by looking at your credit report. ManyThe second thing you can do is to start reducing the
people have much better credit than they assume.debt you have. The less debt, the better your score.
You can receive a free copy of your credit reportFor those of you who use credit cards for the
from each of the three major credit reporting agenciesrewards, but pay off the balance each month, you
-- Equifax, Experian and TransUnion -- once a year.could still be hurting your credit report. The card
You can go to for more information.company may be reporting your outstanding balance
Contrary to popular belief, each credit reporting agencybefore you bill is paid. This shows you have debt, even
does not have the same information about you. Youthough you don't. This will lower your score. So if you
must look at all three reports. Each agency getsuse your card, you should stop for a few months
information from different lenders and different lendersbefore you apply for a loan.
report to different agencies. There are often mistakesYou can improve your credit score by paying your bills
that show up one one report, but not the other two.on time and reducing your credit card debt. That's all
You need to look at all three to make sure they arethat will work. It won't cost you anything. Just get to
accurate.work and over time, you will see your credit score
Once you have your credit reports, make sure all theincrease.