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Your Credit Score and How to Increase It

By George Hauser
Published: Tuesday, October 27th, 2009

Having problems with your low credit score? This might be the perfect time for you to get a credit score advice. No one is expecting you to know everything so it does not hurt to get an advice once in a while. Sometimes a low credit score is your own fault but it can also be the result of erroneous credit report. Whichever the case, you should know that a low credit score can make your life miserable because a number of things can be refused to you with a poor credit report.

Incorrect or inaccurate information affects your credit score. If your creditor submits a wrong credit balance or if a settled bill from five years ago shows up in your credit report, you are likely to have a low credit score. The very first credit score advice that you will receive here is to dispute any errors that you see in your credit report. You are entitled to a free credit report annually so take advantage of this and check your credit report for errors. Corrected errors can send your credit score soaring.

Your financial records and attitudes affect your credit-to-debt ratio and your credit-to-debt ratio affects your credit score. Your credit-to-debt ratio is the addition of all debts used and dividing the sum by available credit. A good credit score advice is for you to check your financial records and attitudes because your credit-to-debt ratio will reflect whether or not you are near to bankruptcy. High debts results to banks charging you with higher rates. To solve this problem, pay the card with the highest interest rate first but do not close your credit account because it will not be good for your credit history. Remember that your credit score is computed using FICO and this particular formula considers your credit history.

Your third credit score advice is to take on a positive credit to increase your credit score. Does your mom, sister, brother, or significant other have a good credit account? You can have them give it to you. Of course, we are not talking here about stealing their identity. You can have their credit account be legally transferred to your name. A good credit record contains a long and positive payment history and a low account balance. This kind of record can improve your credit score to a high degree. Do not worry because the law will protect you as long as you to the transfer legally.

Finally, take the last piece of credit score advice as: know who credit bureaus are working for. Credit agencies or bureaus are certainly not working for you. They are working for lending agencies and banks. If they prepare a credit report, they are preparing it to answer the request of a lending agency or a bank who you may be applying a loan or mortgage for. This is why you should also take action by doing your own review of your credit report in order to be sure that your record still makes you creditworthy. As a final say, even if you are a good person, you can still suffer from bad credit so be cautious in using your credit card.

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