Raise Credit Score Fast – 5 Trusted Strategies
Raise credit score, the mantra spoken by thousands of
people today.
In this current new economy a good credit rating is more important than ever. Without it you won’t be able to get a car loan, credit card or buy the home of your dreams.
Let’s focus on the three most important factors to raise your credit score fast and how to repair it.
A different credit file on you is kept by each of
these three credit bureaus,they are Trans Union
Equifax and Experian.
Get Free Credit Report And Score ! Getting a copy of your current credit report with credit score is the first place to start in preparing to raise your credit score.
Your credit report contain all your credit history. It shows your
loans and credit card payments and any delinquencies you have
such as late payments as well as if you have filed for bankruptcy.
It is extremely important to get your credit report information
and scores from all three credit bureaus to raise credit score.
See Free Credit Report And Score !
Your credit score or Fico scores as it’s called ranges between
300 and 850. This 3 digit number determines whether a creditor
will extend credit to you, and at what rate of interest you may pay.
This table shows your current credit score, if it’s in the poor range then you may want to continue to this Credit Repair Page.
650 – 850 Very Good! A credit score in this range, you have the best ability to obtain credit with the best interest rates available.
620 – 650 Good! This range may be acceptable but your creditor may have a few concerns before approving you for any loans.
300 – 620 Not Good! A score in this range is an indication to creditors that you are a risk for a loan or any type of credit.
With a little credit repair, it’s still possible to obtain credit,
your interest rate will be higher compared to a better score.
Go Here To Learn About CREDIT REPAIR
Now that we have the credit report let’s raise credit score.
There are 5 major factors to raising your credit score, each
weighting a percentage to equal 100 % of this score.
1. PAYMENT HISTORY - How Often You Pay Your Bills
This is the highest factor that makes up 35% of your credit score.
For example, with an average credit score of 700 you can raise
credit score 30 points by paying all bills on time in just one month.
Correcting errors can raise your credit score 100 points.
If you have any errors on your report such a 30, 60 or 90 days late
on payment, it’s wise to file a dispute immediately against the claim.
The bureaus will investigate this dispute and if they can’t determine or
resolve to be correct against you they will often delete or modify this
disputed claim. Experian, Trans Union, and Equifax all have a dispute
hot-line available. Disputing can raise your credit score fast many points
2. HOW MUCH DEBT OWED – The Ratio Of Debt To Available Credit.
This is the second highest factor making up about 30% of your score.
You may be surprised but the more unused credit you have available to
you the better your credit score is going to be.
How much of a balance do you carry on all your personal credit cards?
A single real estate mortgage or auto loan is not very damaging to
your over all credit score. A large amounts of unsecured debt carried on credit cards are. Use this simple system for credit card debt.
Don’t use your entire credit limit on each of the credit cards you own.
For example, if you have credit cards with a credit limit of 2000, 2500
and 3000 dollars, it is better to use 600 dollars on each card rather
than 1800 dollars on one card. It’s best for your credit score if you use
less than 50% of your credit card limit. This will raise credit score.
3. LENGTH OF CREDIT HISTORY- Average Age Of Your Accounts.
This factor makes up about 15% of your credit score.
Having a credit history is very important towards raising your
your credit score. The longer your accounts have been in good standing,
the better. It’s also wise to periodically use some of your older card
accounts to keep them current in their activity levels
4. New Credit – How many Account Have You Applied For Recently
This factor makes up about 10% of your credit score.
How many new accounts have you opened very recently and how
much time has passed since you opened a new account.
When you close an old account your credit history looks much shorter
to the credit scoring system, so keep the old accounts active. Use the
old account occasionally so the lender does not deactivate it, which
would have a negative effect on your credit score.
5. TYPES OF CREDIT – The Mixture of Credit You Use.
This factor makes up about 10% of your credit score.
Lenders like to see a mix of financial responsibilities that you handle well. Having bills that you pay as well as one or two types of loans can actually raise credit score.
You should always have some form of personal credit such as a credit card. Having some larger types of credit such as a mortgage or auto loan and paying them off regularly is better than having only one type of credit.
As you can see, it is possible to see how much a specific area of your credit report affects your credit score. So keep these five areas in mind. When these factors are addressed in your personal credit, they are comprehensive enough to boost or raise credit score fast an effectively.
So, if you haven’t got your credit report by now why wait!
Grab Your Free Credit Report And Score Now !
Finally, Look out for Identity Theft.
Many of us whom are careful about paying bills when due and
having little debts are horrified each day to find out they
have become a credit victim.
In many cases, this happens as a result of identity theft.
Identity theft is a type of crime in which people take
your personal information and steal that information to pose
as you in order to get access to your accounts or identity.
It’s important to monitor your credit report and review the
accounts reporting in your name.
Look Into Identity Theft Protection Here!
From The Blogosphere:
When Not To Lower Your Credit Card Score You are maxxed out and your rates are decent. Don’t like that 15.9 percent interest rate? Unless you have plenty of open and available credit lines (and/or a strong credit score. Credit Scoring Changes You Need to Know Financial expert Mary Hunt shares credit scoring changes you need to know. Credit Score – What You Need To Know For example, Equifax uses BEACON score method while Experian, another well-known credit score company, use their Experian/Fair Isaac Risk Model to find out their client’s credit.
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