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Improving Your Credit Score the Reliable Way

By Karen Anderson
Published: Tuesday, October 20th, 2009

Having problems on your credit score? Now is the time to look for credit report tips that can help you improve your credit score. If you have a poor credit score, you will also have a poor chance of availing a credit line and a poor chance of getting employed. There are ways, however, to improve your credit score in order to have a brighter future when it comes to applying for a job, applying for a loan or credit line, and applying for insurance.

Your first tip among the credit report tips that you will be reading hereon is to pay your debts. This is one surefire way to repair your credit score because if you are carrying a debt, you will likely have a low credit score. If you pay your existing debt, your credit score will improve. This does not mean, however, that you should pay your debt in one big instant unless you are financially capable to do so with some amount left over for emergency purposes. You only need to be mindful of due dates and pay your dues on time because your credit score will be improved if you pay on time. Remember, your payment history composes as much as 35% of your overall credit score.

Next on our credit report tips is for you to check your credit report for any errors or inaccuracies. Your credit report contains records on your credit cards, loans, mortgages, utility bills, mobile phone contracts, insurance policies and ban accounts and there can be inaccuracies on the report that a credit bureau records on your credit report. Experin, Equifax, and TransUnion are the four major credit reporting companies and you are entitled to one free report annually from them. You need to be sure that all information is accurate even if you do not have poor credit report. Your credit report is for public consumption and you may lose much if an inaccuracy is left uncorrected.

Our third tip among these credit report tips is for you to be careful with limits. No matter how tempting to max your credit card, do not do it because this will lower your credit score. Take the combined credit limits of all your credit cards and be careful not to go over the sum of the credit limits of each card. If you go beyond 30% of your mark, it will reflect that you are living primarily off credit and using money that you do not have. This will be translated further as a high risk on defaulting on your payments and will result to your credit score dropping.

For our final tip on this credit report tips, avoid canceling your credit cards. It will be read as severe financial problems by creditors if you suddenly cancel your credit cards. Try to hold on to your credit card because your credit history makes up 15% of your credit score. If you are able to keep your credit card for some number of years then you will have a good reputation to creditors as this shows how good you handle your financial situations. Also, canceling your credit cards often will reduce your credit limit and will erase your track record on maintaining a good credit history. Once your credit limit is reduced, your spending will be riskier.

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