How To Fix Your Credit Score

In this article we will be discussing how to fix your credit score.

Credit repair companies cannot eliminate negative information that is accurate and current on your credit report. Beware of paid credit repair companies that claim that they can clear your credit report by having the information removed. If there is information in your credit file that you believe is inaccurate, a credit repair company might offer to challenge that information with your credit reporting company on your behalf

If the credit bureaus determine what you reported is in fact incorrect, they will clear it and increase your score. If you really do find something you think is an error, the credit bureau is supposed to investigate any dispute that you raise and report back to you. Review your credit reports, looking for inaccurate information such as accounts that do not belong to you, late payments that were made on time, the same debt listed multiple times, and incorrect account balances.

Your credit report has information on whether or not you pay your bills on time, which loans and credit cards you own (and how much you owe), and if you have filed for bankruptcy. The more positive information on your credit report, such as timely payments and a lower credit card balance, the better your credit will be. It takes time, but you can build better credit by paying bills by their due dates, paying down debt -- particularly credit cards -- and not taking on any new debt. The single most important thing you can do to improve your credit is pay your bills on time, paying at least the minimum required. Show Source Texts

If you have any debt that is unpaid, paying it off could help to improve your payment history and lower your credit utilization ratio. If you are able to make smaller payments -- often called micropayments -- over the course of the month, this can help lower credit card balances and help your credit score. Not only does closing credit card debt hurt your scores by taking away this available credit and increasing your credit utilization ratio, keeping open accounts with payments may be a benefit, too, since these are older accounts that are in good (payable) shape.

Past delinquencies prevent you from getting approved for a big credit card, so limit credit card applications to one, at best, two accounts until your credit scores have improved. Credit inquiries are added to your credit report every time you make a new credit application; too many hurt your credit score and ability to get approved. Show Source Texts

Once your credit goes bad, it may bring down your credit score, and that may take months or years to get back up. If you are lucky enough to have a bad or damaged credit score -- usually less than 670 -- this could keep you from doing things you want, whether it is getting a new car, renting a nice apartment, or buying that dream house.