How To Improve Your Credit Score

By John Cooper

Improving your credit score can seem like an impossible task. This is because there is so much contradictory information and the scoring model makes you feel as though you have no direct control over your credit score.

Well they are wrong. No matter how bad your credit score is you can take a couple easy steps and improve it.

1. Dispute and remove negative items on your credit report. This can be done yourself or you can hire a service to do it on your behalf.

2. Pay off any verified bad credit item on your report. In exchange for your payment have the lender remove the item from your credit report.

3. Pay your bills on time. It is alleged that missing one monthly payment can cause your score to drop by up to 50 points.

4. Open a new credit line. This is best if it is a revolving line of credit, for example an unsecured credit card.

By paying your monthly bill you will develop a positive payment history. This is a heavily weighted factor when your score is being calculated. If your score is currently to low to get an unsecured credit card then open a secured card just make sure it reports to all three bureaus.

Your score will get a bump if you can keep your balance at approximately 10% of your credit limit. This shows that you do use your credit and that you use it responsibly.

5. Pay your large debts down. This is called your available credit to debt. The bureaus need to see that you are not in over you head and that you do have credit that is not being used.

These five factors are the only things you need to concern yourself with when trying to improve your credit score. There is one last factor however it is shadowed in controversy.

6. Piggyback credit, this is where you become an authorized user on a high credit limit credit card. The benefit is this account is now reported on your credit report and adding a tremendous boost.

This tactic was widely abused and the scoring model has made some changes. It is said to have removed the benefit however it is debated as to if those changes have taken place yet.

In sum by doing step one through five you will improve your score dramatically. With an improved credit score you will finally be able to have the quality of life you truly deserve.

To learn more about how to remove a charge off or for more tips on credit repair visit us.

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