If you have a less than stellar credit score, you are probably wondering how to go about raising your credit score. I have listed these proven four ways to improve your credit scores.
Improve Credit Score – Method One
Review a copy of your credit report from all three of the major credit reporting bureaus: Trans Union, Experian and Equifax. Notate any errors that you might find whether they be incomplete, unverifiable information, or simply inaccurate. Write a letter to each of the three credit bureaus highlighting each of the errors and asking them to correct them immediately. Once they correct your reports, your credit scores should improve.
Improve Credit Score – Method Two
Thirty percent of your credit score is based off of your balance due on revolving accounts compared to your credit limits. If you are over 30% of your limits you need to pay these down to get the maximum benefit to your credit scores.
Improve Credit Score – Method Three
Missing just one payment can drop your credit score by as much as 100 points! That is why method three is making sure all your payments are on time. If you have a late payment on your report that is within the last two years, it is affecting your credit scores more than a late payment from five years ago. Contact any creditor that you might have been late paying and ask them to update as never late. If you have an overall good payment history with them and only one time you were late there is a good chance that they will remove the late payments from your credit reports. Remember, most creditors use call centers to answer your telephone calls. I suggest calling three or four times if at first you are told “no” that they cannot update your payment history. Each time you call you will be talking to a different agent…one that might be on your side and update your payment history.
Improve Credit Score – Method Four
Do not close old accounts. Leaving an old account in the “open” status can add points to your credit scores. Many people have been told incorrectly that you should close old unused accounts. That is not true. Fifteen percent of your credit score is based off of the age of your accounts. Having older accounts, even if they are not being used currently adds to the age of your credit history and helps to improve your credit scores. Also, if the accounts are credit cards with no balances, by closing them you will be raising your overall debt to limit ratio that I talked about in method number two.
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