If you have been having a problem with debt, and your credit score has suffered, there are things that you can do to raise it without outside help. It really is not necessary to pay someone else to do it for you. Here are some straightforward tips on how to raise your credit score yourself.
Fix Credit Report
If there are errors on your credit report, this can give you a low credit score – if the problems are serious. Unfortunately, if you have had problems with identity theft and are not even aware of it yet, it still will affect it. The good thing is that your credit report will show you where there are problems.
You can get one free credit report from each of the three large credit bureaus (EquiFax, Experian, and TransUnion) each year from www.annualcreditreport.com, which is the official site. You will have to pay in order to get your credit score. Once you get the credit reports, be sure to follow any steps needed to correct errors.
If you are thinking about applying for some kind of credit soon, be sure to wait about six weeks, because it may take that long for any corrections to appear on your credit report. Also, realize, that if you have had some credit problems in the past, such as a bankruptcy or lien, these will stay there for seven to ten years.
Lenders look at the amount of debt you have and the amount of credit you have. This is a very important factor in determining whether or not you will be given any new credit. You can raise your credit score by bringing your debt down to about 20 percent of your credit. The way you want to do this, however, is to start paying down your debt to that level. closing or opening credit cards will be seen on your credit report and lenders will not be fooled buy it.
Pay Your Bills On Time
This is the one most important thing you can do in order to improve credit score, says FICO. Doing this one thing counts for 35 percent of the calculation of your credit score. FICO also indicates that no company can give you a good credit score – no matter how much you pay them for it. Don’t fall for the hype.
Start working now to pay on time – every time – and do that for all of your bills. After a while, your credit score will start to improve, but it will not happen overnight. Besides not having to pay any more expensive late fees, paying down your debt will also hep you to save on interest, too.
Get Caught Up on Your Bills
If you have fallen behind in your bills, it will help you to get caught up to date as soon as possible. This will help creditors see that you are doing what you can and are working to get it corrected. This will look good, especially if you pay them on time until you do get caught up.
If you are having financial trouble because of some difficulty and you cannot make the current payments, be sure to contact them quickly. Don’t wait until the creditors are calling, or the collection agencies about delinquent payments. By contacting them, you will probably find that they may work with you by lowering your payments temporarily and even giving you a lower interest rate. Be sure to ask for it. They will often do this – but not always.
As you can see, it is not hard to raise your credit score. While it would be nice to have a magic formula – there just isn’t any. Start today to build your good credit score and enjoy the benefits once you get there.