| The calculation of your credit score is based on | | | | payments? Was there a time that your creditor had to |
| several factors which involve the manner how you | | | | pass the collection of your payment to a collection |
| have been managing your finances. Credit bureaus | | | | agency? A yes to these questions is a clear indication |
| use software that takes in data from banks and other | | | | that you have been remiss in your payments and the |
| financial institutions: your payment history, the amount | | | | credit bureaus will deduct a lot of points from your |
| of debt you owe, your credit history, the types of | | | | score. Remember that 35% of your total credit score |
| loans you have made, and any new credit you have | | | | is based on your payment history. To improve your |
| started lately. You will know how to improve your | | | | score then, you simply have to pay on time, always, |
| credit rating by examining these factors and creating a | | | | and never let the due date expire. Additionally, getting |
| game plan to help you get out of the red. You will be | | | | current on your existing past due accounts will also be |
| surprised to know that simply reversing the practices | | | | a great help. |
| that led you to your financial problems can vastly | | | | Examine the balances of your credit cards. Is the ratio |
| improve your chances of increasing your low score. | | | | of your debt-to-credit limit high? Maxed out cards are |
| Your credit report is an essential tool that will help you | | | | your doom. Creditors want to see low balances on |
| chart your way to recovery. You can get a free one | | | | your credit cards. Opening more accounts won't help |
| once a year from any of the credit bureaus such as | | | | but also don't close old, unused ones, especially if they |
| Experian, Transunion and Equifax. Since it's free, get | | | | have a zero balance because they can help increase |
| your copy of your report, it's just a phone call away. | | | | your score. Your strategy - keep your balance below |
| Understanding how your score was calculated, you | | | | 33% of your card limit; pay off your debts; if you can't |
| can take a look at your credit history and begin from | | | | pay the whole amount due then pay the minimum; and |
| there. Did you let the due date expire on your | | | | don't move the balance around different cards. |