How To Improve Your Credit Score in The New Year
Its 2009! A new year means a fresh start, and is a perfect opportunity to improve your credit score. As a result of the sub-prime credit and lending crisis, lenders are demanding a higher credit score to approve new credit.
That means that it is more important than ever to focus on increasing your credit score. So, lets get started on your road to raising your credit score.
First, to raise your credit score, you need to understand how your credit is calculated. Your credit report contains data including your payment history, debt total, and available credit.
This data is placed in a mathematical formula, and then calculated to generate your credit score. The determined number is a prediction of how likely you are to pay your bills.
The best credit score is 850 and the lowest is 300. The average American has a score between 600 and 800. To really benefit, you must raise your credit score so it is at least in the average range.
The next and perhaps most important step is to increasing a credit score is identifying credit information that damages a good credit score. This includes but is not limited to collections, late pays, repossessions, charge-offs, bankruptcy, and judgments.
1 in 4 credit reports have a mistake that is serious enough to keep a consumer from receiving credit approval. And, another large amount of credit reports contain errors that force a consumer to pay higher interest rates on big ticket items.
If you improve your credit score, youll save money, time and embarrassment. Errors can end up on your credit report for numerous reasons, including: mistaken identities, identity theft, and administrative mistakes.
Regardless of the reason, if you want to improve your credit score, you must dispute any errors you find. When you find an error, you should create a letter to send to the credit bureaus and ask them to investigate.
Due to the unstable economic times, its more important than ever to raise your credit score.
By taking the steps listed above, youll be on your way to a stellar score, and a better life.
That means that it is more important than ever to focus on increasing your credit score. So, lets get started on your road to raising your credit score.
First, to raise your credit score, you need to understand how your credit is calculated. Your credit report contains data including your payment history, debt total, and available credit.
This data is placed in a mathematical formula, and then calculated to generate your credit score. The determined number is a prediction of how likely you are to pay your bills.
The best credit score is 850 and the lowest is 300. The average American has a score between 600 and 800. To really benefit, you must raise your credit score so it is at least in the average range.
The next and perhaps most important step is to increasing a credit score is identifying credit information that damages a good credit score. This includes but is not limited to collections, late pays, repossessions, charge-offs, bankruptcy, and judgments.
1 in 4 credit reports have a mistake that is serious enough to keep a consumer from receiving credit approval. And, another large amount of credit reports contain errors that force a consumer to pay higher interest rates on big ticket items.
If you improve your credit score, youll save money, time and embarrassment. Errors can end up on your credit report for numerous reasons, including: mistaken identities, identity theft, and administrative mistakes.
Regardless of the reason, if you want to improve your credit score, you must dispute any errors you find. When you find an error, you should create a letter to send to the credit bureaus and ask them to investigate.
Due to the unstable economic times, its more important than ever to raise your credit score.
By taking the steps listed above, youll be on your way to a stellar score, and a better life.
About the Author:
For a free credit consultation call 1-866-246-7311. Or for a free credit repair letter or a online credit repair e-book visit us.
posted by Credit Counseling at
9:49 AM
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