Bryan Hufford asked:




Ever wanted to improve your credit score? Don’t fall for the false internet claims of “raising your score overnight!” I’ve got 3 tips that cost nothing and will help you raise your credit score over time.

1. Make sure your credit report is accurate

Are you sure the information on your credit report is up to date? Small errors on your credit report may affect your credit score. Here’s an easy way to improve your credit score: With the Fair Credit Reporting Act in place, you are entitled to make any changes of errors that appear on your credit report. By identifying the error and submitting proof to any of the 3 credit bureaus (TransUnion, Experian, and Equifax), you can get inaccurate items deleted from your credit report! This can help raise that FICO score!

2. Maintain balance on credit cards accounts at 30% of your limit

Credit bureaus do not like seeing your credit card accounts maxed out. It shows financial irresponsibilty. A safe percentage to have circulating each month on your credit card balance is 30% of your credit limit. If your credit card balances are higher than 30% of your credit limit, pay down the balance so it remains at 30% or lower of your credit limit. This will also help raise your FICO score.

3. Make payments on time each month and every month thereafter

Your FICO score is based on the past 2 years of payment history on any credit card or installment accounts. Making one late payment on any account can lower your score significantly. By making timely payments each month, you can increase your credit score over time.

These are just 3 simple tips that cost nothing that can help raise your credit score over time. I hope you’ve found them helpful in your quest in gaining a better credit history.

Teresa

Paul Sarwana asked:




Many people often wonder how they can raise their credit score. It is actually easier than most people think. There are many different steps you can take for improving your overall credit rating. Here are three essential steps you can take:

1. Obtain Copies of Your Credit Report

One of the first steps to increase your credit score is to obtain copies of your current credit status from the three main credit reporting agencies. As the three major credit bureaus, Equifax, Experian and Transunion may have different items on their reports you will want to compare them and thoroughly look over them.

Make sure that there are no errors or mistakes on the report that could be bringing your credit score down. Checking over your three credit reports will also give you a full understanding of where you stand and how much work you will need to do for your credit score improvement.

2. Make All of Your Payments on Time

Another way to raise your credit score is to make all of your payments on time. If you currently have any open loans or credit cards with balances, be sure that you make the full payment on time. Always make any and all payments by their given due date because anytime you make a late payment, it affects your overall credit score.

As well, work to pay off your credit cards and loans. You can simply do this by paying off the smallest credit card balance first and then working your way up the ladder. The less you owe on credit cards and loans, the higher your score will be.

3. Obtain or Not to Obtain a New Credit Card

While trying to boost your credit score, you will not want to obtain any new credit cards or loans. The more available credit you have available, the lower your score can become. Stick with the current credit cards you have, as well as work to pay them off as soon as possible.

If you are trying to repair your bad credit and currently do not have any open credit cards or loans, then you may want to obtain a credit card with a small credit limit. Each month you can put a small amount on the card. After you have had the card for a while and have made the monthly payments on time, your credit score will begin to improve.

So, whether you are starting from scratch or have damaged your credit rating, you can take some simple steps to raise your credit rating. The harder you work on improving your score, the quicker and easier it will happen. And before you know it, you will have the good credit score you desire.

Franklin

Troy Burton asked:




The most important factor in a person’s status in borrowing a particular amount in a lending company is his credit rating. This is the basis of banks or lenders in their decision of letting you barrow their money. These companies want to make sure that their money is also been entrusted to a worthy borrower. Credit status is very significant in identifying if you are responsible of giving back the money you owe following the terms and conditions that you agreed upon. There are so many things that are reflected and recorded in a personal credit report such as your debt history, credit card balance, previous loans and other financial related matters. Maintain a good credit status is not an easy task that is why people are struggling and working hard to maintain a good credit because a poor credit status will be a hindrance in asking for financial assistance to several banks and lending companies in the future.

Having a poor credit status will make your life more complicated as you will look for lenders who will help you in managing your balances because they might offer a higher rate due to a poor credit score. If that is the case, it will be more difficult for you to recover if you will pay a higher interest rate in your monthly bills. That is why, it is advisable to take good care of your credit status so that you will not encounter some inconvenience in the future if you plan to borrow or apply for a loan. A good financial status will help you in several ways such as having a cheaper interest rate to anything that you will borrow in the future. Obtaining your dream house, favorite car and shopping are the most popular luxuries in life. They might be expensive but all of them are attainable and payable if you have proper management of your financial resources resulting to good credit rating. Be very careful in maintain your financial status because it can greatly affect to your overall status in the society especially in finance.

As soon as you realized the importance of your financial status, think about it and do something right away to make it better. There is always a beginning and an end for every good and bad thing you have in life. So if you have a poor credit rating, then it is the best time for you to start making solutions to improve it.

In improving it, the first thing that you must do is to obtain a credit report. Never proceed to anything else unless you already completed this first step. Every financial status of an individual is correlated and dependent to his credit report therefore it is best to have one beforehand. You will find the summary of all your financial activities in that report. By seeing all of those things, you will be able to clearly identify all the details in your account. By doing that, you will get an accurate idea as to how you will prioritize the existing problems in your credit report. Then you can already proceed to correcting your mistakes and disputes. You might start to control the use of your credit cards to lessen the interest rate that you are paying monthly. You must spend within the limitation of your resources. Exceeding to your financial capacity is dangerous and risky for your credit status. Pay your bills regularly without delays and do not forget to pay your other bills accordingly to prevent accumulation of interest.

Janet

Nataliya Yakushev asked:




Building positive credit as early as possible is the best thing anyone on the brink of independence can do for themselves. Getting a head start makes it easier to obtain a line of credit when you really need it further down the road. If you wait too long to take your first stab at getting a credit card, lenders can deny you for not having enough debt – even worse, that rejection will show up on your credit report and pull down your credit score. While the notion seems backwards, credit card companies don’t want to take a blind risk.

Establishing revolving debt, or debt that fluctuates each month, like a credit card balance, is extremely important to creating positive credit. Lenders want to see that you have a history of spending money and being able to pay off those debts in a timely manner. Getting a low-interest card and using it sparingly is the best route to personal revolving debt.

A short-term approach to financial freedom – like avoiding opportunities to build a solid credit history – can prevent you from getting credit when you really need it, hurting your future financially.

Debit cards aren’t always the answer

Many college students and young people out on their own for the first time rely on debit cards as a credit card substitute, but this practice can actually hurt them in the long run. While using a debit card does force you to stay within your means and helps you save money by avoiding interest fees, you’re not creating a credit history of any kind.

Don’t piggyback on someone else’s credit

Parents often add children or spouses as “authorized users” to their card. This gives the authorized user free rein to use the credit card with none of the responsibility for paying the bill, which lies squarely on the original cardholder’s shoulders. It’s an easy way for students to quickly earn a good credit rating. However, late payments will negatively affect everyone associated with the account, regardless of who’s responsible for paying the bill. A secured card account may be a better choice and help avoid a poor credit history.

Get a secured credit card

People having trouble obtaining a traditional, unsecured credit card might want to build their foundation with a secured card. A secured card requires cardholders to offer collateral upfront to guarantee payment. It allows you to save and gain a line of credit at the same time. If you provide $300 upfront, your secured card will have a $300 spending limit. When you choose to cancel, the company returns that initial deposit to you, minus any outstanding debt.(1)

“Secure Credit Card List: Add Accounts, Build Your Credit Report History, and Improve Your Credit Score (Increase Your Savings Too),” The Credit Scoring Site

Laurie

Jay Delgado asked:


You have the right to obtain one free credit report a year from each of the major credit reporting agencies: Equifax, Experian and TransUnion. Reviewing your free credit reports each year can be extremely beneficial when it comes to protecting and improving your credit standing. If you have not taken advantage of this free resource, you should do so immediately.

There are three ways that you can order your free report:

* Online: When you order your credit report online, you will be able to view and print it instantly.

* Phone: 1-877-322-8228. If you order your report by phone, it will take 15 days to process your request.

* Mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta GA 30348-5281. You will need to fill out a request form to order your report by mail. It may take 3 to 4 weeks to receive your report through the mail.

Remember; you can only obtain your free annual credit report through Annual Credit Report; you can NOT contact the credit agencies directly for your free report. They will provide you with a report, but you will have to pay for it (average cost $10.50).

When you request your free credit report, you need to have the following information: address, social security number and date of birth. If you have lived at your current address for less than two years, you will need to provide your previous address. You will also need to be able to provide information about your personal financial affairs so that the bureaus can confirm your identity. Some of the most common questions asked by credit bureaus involve information that you are very familiar with such as the amount of your mortgage payment, car payment or credit card balance.

In addition to one free annual credit report, there are special circumstances where you may be eligible for a free report directly from one of the credit reporting bureaus:

* Adverse Action: If you are turned down for credit, employment or insurance benefits because of information contained on your credit report, you are entitled to a free report within 60 days of receiving notice of the action. The notice will include all the information you need to request your free report.

* Unemployment: If you are unemployed and plan to look for a job within the next 60 days, you can request a free credit report from one of the three main credit reporting agencies. You are only allowed one per year. This also applies for families receiving public assistance.

* Identity Theft: If your report is inaccurate because of fraud or identity theft, you can request one free copy per year.

Most financial advisers recommend that you review your credit report for errors every 90 days. If you are not requesting your free reports regularly, you could be putting your financial future in jeopardy. Nearly 25% of credit reports contain errors that can lead to a denial of credit. Yours may be one of them, but you will never know unless you check it out for yourself.



Linda