How can you improve your credit score?
It's virtually impossible to change your score in the time between when most people decide to buy a house or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.
Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.
Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.
The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.
Late payments can also work against you, especially the more recent the late payment. It's extremely important to pay bills on time, even if it's only the monthly payment.
Dont "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. It's best to keep your balance at 35% of the credit limit or at 50% or less if necessary.
If you carefully managing your credit, it's possible to add as much as 50 points per year to your score.
Repairing Credit
If you do find out that you have mistakes on your credit report, you might want to consider enlisting the services of a Professional Credit Repair company to help you clean up your credit. Our office can make recommendations to "legitimate" credit repair companies.
If you wish to download a document that may be easier to view and save for future reference, please click on the following link:Credit Scoring and How it Works for what I hope can be very helpful information to you.
