To improve your credit score can seem like an impossible task. The scoring model seems to factor in tons of information and makes it seem as if you have no control over your score.
Well they are wrong. No matter how bad your credit score is you can take a couple easy steps and improve it.
1. Disputing and removing bad credit items on your report. You can do this yourself or hire a service but it will help your score the most.
2. If an item is verified then work out a way to pay them in exchange have the item removed from your your credit report.
3. Pay your bills on time. It is estimated that missing a payment can damage a good score by up to 50 points.
4. Open a new line of credit. Your score will receive the most benefit if you have a revolving line of credit. We suggest an unsecured credit card.
This will also help you build a positive payment history by paying your monthly bill. However if you can not qualify for an unsecured credit card then open a secured card, but make sure it reports to all 3 bureaus.
Your score will get a bump if you can keep your balance at approximately 10% of your credit limit. This shows that you do use your credit and that you use it responsibly.
5. Pay off large debt. Your score will get a bump if you have high available credit to debt. The bureaus want to make sure you are not overextended and by showing them you have available credit your score will get a bump.
These are the five factors you should focus your efforts on. There is however one last factor that is surrounded by controversy.
6. Piggyback credit, this is when you are added as an authorized user to a good credit card account. The benefit is this account is now reported on your credit report.
This tactic was widely abused and the scoring model has made some changes. It is said to have removed the benefit however it is debated as to if those changes have taken place yet.
In sum, focus on steps one through five and you are on your way to a 700 credit score. You don't have to live with bad credit you can increase your score and your quality of life. - 16036
Well they are wrong. No matter how bad your credit score is you can take a couple easy steps and improve it.
1. Disputing and removing bad credit items on your report. You can do this yourself or hire a service but it will help your score the most.
2. If an item is verified then work out a way to pay them in exchange have the item removed from your your credit report.
3. Pay your bills on time. It is estimated that missing a payment can damage a good score by up to 50 points.
4. Open a new line of credit. Your score will receive the most benefit if you have a revolving line of credit. We suggest an unsecured credit card.
This will also help you build a positive payment history by paying your monthly bill. However if you can not qualify for an unsecured credit card then open a secured card, but make sure it reports to all 3 bureaus.
Your score will get a bump if you can keep your balance at approximately 10% of your credit limit. This shows that you do use your credit and that you use it responsibly.
5. Pay off large debt. Your score will get a bump if you have high available credit to debt. The bureaus want to make sure you are not overextended and by showing them you have available credit your score will get a bump.
These are the five factors you should focus your efforts on. There is however one last factor that is surrounded by controversy.
6. Piggyback credit, this is when you are added as an authorized user to a good credit card account. The benefit is this account is now reported on your credit report.
This tactic was widely abused and the scoring model has made some changes. It is said to have removed the benefit however it is debated as to if those changes have taken place yet.
In sum, focus on steps one through five and you are on your way to a 700 credit score. You don't have to live with bad credit you can increase your score and your quality of life. - 16036
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To learn more about how to remove judgments, charge offs, late payments, collections or any negative mark or to learn about lexington law firm a professional credit repair service visit us.
