Do you have a low or bad credit score that you would like to fix?
If so, then follow these 5 credit repair tips to fix your FICO score quickly.
Your first step is to request a copy of your credit report from each of the three main credit bureaus… TransUnion, Experian, and Equifax. You can easily contact all three by mail, telephone, or through the Internet. We have many more Credit Repair Articles Now Available.
Your individual FICO score is based on the information listed in your credit report, which contains a history of your past debts and repayments. Before you can begin fixing your credit score, you need to get a copy of your reports to see where you currently stand and what needs to be done.
Look At Your Credit Report
Once you have received your reports, you’ll be able to see the information your credit score is being based on and what your problem areas may be. If you have a low score, look at your credit report and try to figure out what accounts or information could be causing the problem.
Dispute Any Errors
You want to make sure that all of the information listed in your report is accurate.
Look for any type of mistakes, especially with your credit card accounts…as they are given more weight in calculating your FICO score.
If you should find any inaccuracies, you need to dispute them with the credit bureau that created the report you are looking at.
Credit Card Limits
One of the things that you want to confirm is that the credit limits on your cards are being accurately reported to all three credit bureaus.
If your credit report only shows your current balances and not your limits, it will give lenders the impression that you are maxed out on your accounts. And, as we know, being maxed out on any account does not send a good message to a new lender.
Keep Your Balances Low
A tip that goes a long way in fixing your score is to keep the balance that you carry on your credit cards at below 50% of their limits…preferably in the 30-35% range.
If your current balances are higher than this and you plan on applying for a large loan, you want to pay down your balances 2 – 3 months before you apply…to give your credit report enough time to show a “history” of being at the lower percentage.
Check For Missing Accounts
You always hear about the tips telling you to dispute and remove the negative items that are on your credit report, but what about the positive ones?
You want to make sure that all of your “good credit” is being reported to the credit bureaus. Since different creditors may not report to all three bureaus, a good account with a great payment history may not be showing on one of them.
This is important because, when your credit score is calculated, any missing accounts could cause your score to be lower than it should be.
When potential lenders pull your credit report and see that your score is low, they will view you as being more of a credit risk to them. This may cause them to either deny your loan application entirely or approve it at a much higher interest rate.
Consumer reports are put together by the various credit bureaus, which use information supplied to them from their client companies. The best way to have a good credit score is to make sure that you manage your accounts well and that both your lenders and the credit bureaus know it. We have many more Credit Repair Articles Now Available.