Mortgage Forum

Zino

A multitude of consumers tend to think that their credit score is permanent and cannot be changed. Nothing could be further from that concept. Your credit score is right under your control and you can improve it in only a few easy steps.

The first action that you can do is to obtain a copy of your credit report and check it for inaccuracies and old items that may have not yet been expunged. This really is easier than it sounds and it's simple common sense.

As a consumer, you are entitled to one free copy of your credit report every year from all three major bureaus. They are; Equifax, Transunion and Experian.

Get your free credit report and look it over for any items that may be obsolete or invalid. By law, the credit agencies are required to expunge resolved issues from your credit report. This should be the first thing that you look for.

If you paid your debts or neutralized a balance, it's best practice to have retained a receipt. Remember when your mother told you to hold onto all of your receipts? Now is the time when it really pays off if you listened to her.

Before you contest any item, make sure you can provide documentation of the payment that was made. If you can't locate your receipt, just call the creditor and ask for a duplicate one. Normally if you call your creditor and request a copy of a receipt, they will willingly oblige.

Make sure it's on official letterhead and signed, if at all possible. Trying to eradicate an item on your credit report by lying or denying knowledge of it is illegal and you can go right to jail.

Another method to raise your credit score is limiting the number of credit applications you fill out. All those credit cards promising premiums, rewards and all those extra perks can be very tempting.

The hard truth is that excessive credit card applications can actually hurt your credit rating. This practice is called shot gunning and is extremely more detrimental than beneficial.

By far, the most practical plan is also the most basic - pay your bills. If you're able to, exceed the minimum payment due each month. Put a little extra green in there to bring down the balance as speedily as possible.

A premature pay off is a very large plus on your side. It exhibits integrity and establishes trust among the community of credit agencies.

The most notable factor in determining your credit score is reliability and risk. By paying every month on time and bringing the balance down to zero effectively decreases the risk factor associated with your credit.

All of these are things you can do to increase your existing credit. Obsolete items can be a downer when it comes to your credit score. If they are still there, eradicate them right away.

Inspecting your credit report is an important part of responsible credit management. Reviewing your report regularly will reveal any oddities. If you do happen to find any, address them right away to the credit agencies and have them expunged at once.

Remember, a good healthy credit score can really be an asset. Use your credit only as needed and with smarts and when you do have to incur a debt, pay it off as speedily as you're able.

If you can manage to effectively repair and keep your good credit, you'll certainly come out a winner again.
About the Author

Alan Largo is the creator and administrator of My Credit Bible and strives to assist others identify with their adverse credit situation through informative reviews. You're invited to visit My Credit Bible to read his most recent article review.
Article Source: Content for Reprint

gtull1

Good stuff.

We got a free copy of our credit report a few years ago when we were getting a home loan. We found a lot of items on the credit report that were wrong. They even had some debts on it that weren't ours to begin with! I would highly advise that everyone should check with the credit bureaus at least once a year. We do it every year now during tax season.

Paying your credit cards, loans, etc. every month on time is huge. It is by far the most important aspect of your credit rating. Just being late on paying your mortgage once can hurt you so badly that it can take months or even years for your credit score to bounce back to where it was.

One other thing I would add is that it is extremely important to get rid of all those credit cards that have small balances. You are much better off consolidating your loans into one than having 20 credit cards, personal loans, etc. out there. Of course just paying those credit cards off is the best bet, but if you can't, you really should call your banker and apply for a consolidation loan.