Improving Your Credit Score – Is It Possible?
by Debt Jerk
Right now, according to the media there is nothing more important than having a strong solid credit score. The current economic situation has made the money that used to be available to borrow to help people pay for mortgages or credit cards, are nowadays hard to obtain is your credit score is far away from perfect.
Sadly, many consumers do not know that a weak credit rating affects the ability to borrow money from others as well as its effects on many other aspects of daily life.
For example, credit rates play a big part in how high or low insurance rates are. A lot of homeowners insurance companies no longer write policies for those who the company feels are at a risk of defaulting and not paying on time.
If you are applying for a job with a low credit score, many employers check your credit reports and some of them often deny employment for people who have bad credit. Employers back this up saying that if a person is not able to be responsible for bills, then he/she will not value the job and will not meet the standards that are needed. Credit scores affect everything from jobs to insurance, so be aware of what your credit score is.
What can I do to improve my credit score?
With a credit score, the biggest positive is that you can always improve it. The first step you need to take in improving your score is to to begin paying your bills on-time. Do this before starting to find out what is listed on all of your credit reports.
Your lenders report your credit habits to three main bureaus. The information that is collected from these reports is the date accounts are opened in your name, the credit limit on the accounts, the account type, and how pay for your account. This data determines what your FICO score is.
How do I receive my credit report?
Today, there are many great modern tools that allow you to quickly and easily obtain a copy of your credit report. You can receive your report from all three agencies all at the same time. Today, the federal government offers a program that lets people get of copy of their credit report each year without any cost.
You can quickly print out all of your reports and check them for any inaccuracies that may have occurred.
If you find something that just doesnâ€™t look right, you should definitely notify each credit bureau in writing. Have them look into it and figure out what is wrong. If something is in fact wrong, they will remove it from the report and then raise your credit score.
Try to avoid the Common Mistakes that Many Make
Many times, people who are trying very hard to improve upon their credit score wind up unknowingly making it go even lower. An example of this is when you analyze one of your credit reports and you notice a credit card that you do not use as much anymore, so you immediately close the account of the credit card.
This is a huge mistake on the consumers part.
If the account is in great standing and it has been for awhile, this helps to elevate your credit score. Even if one of your credit cards become idle, if the account is in good standing do not close it. Also, make sure you do not have high balances on any of your credit lines.
On average, you should have nothing more than 40% over your credit line outstanding during a single time period. Anything that goes over the line will negatively affect your score.
When you try to improve your credit score, there are many ways to do it. Just be sure that you do not fall into the common mistakes that many people do. Once you build up your credit to a great score, you will notice you have many new opportunities to choose from.