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The Best Strategies For Improving Your Credit Score

If you have had problems with debt or if you don’t have much credit, chances are good that you are looking to improve your credit score. Improving your score is a slow process, but it is worth it. Raising your score will come in handy when you do need credit for a large purchase, like a house or a vehicle. Additionally, raising your score will help you qualify for better rates and may even help you get a better job. If you want to raise your score, try any of these methods:

Pay Your Bills On Time

Your credit score is made up of five basic components that are each assigned a certain weight. The most important part of the score, worth 35%, is a person’s payment history. By far, the most important thing a person can do to raise his or her credit scores is to pay all delinquent bills and maintain a history of making payments on time.

Decrease The Amount of Credit Used

The second most important factor the credit utilization ratio. This ratio, which is worth 30%, tells lenders how much of your credit you are currently using. In general, the lower the ratio the better.

For example, suppose you have two credit cards, both with a credit limit of $5,000. If you spend $4,000 on one credit card and $1,000 on the other, you will have used 80% of your credit on the first card, 20% of your credit on the second card, and 50% of your credit overall. Having too high of either an overall credit ratio or a single card ratio can negatively affect your credit.

Correct Your Credit Report

In addition to changing the way you manage your credit, you should also be sure to check for errors on your credit report. According to the Federal Trade Commission, over 42 million Americans have inaccurate information on their credit reports. While some of these errors are mundane, the FTC classifies at least 2.2% of these errors to be “serious.” While that may not seem like a lot, 2.2% of 42 million is at least 924,000 people currently living with serious credit report errors.

If you are concerned about your credit score, it is important to review your credit report for errors at least once a year, and to report any inaccurate information to the credit bureaus immediately. Doing so can dramatically increase your credit scores.

For instance, in a follow-up study the FTC found that at least 1 in 5 Americans had reported an error on their credit report to the credit bureaus. Of these people, 20% reported that removing the inaccurate credit information had resulted in an increased credit score and a decreased risk rating.

Help for Consumers

Taking control of your debt and your credit rating is an admirable goal. At Loan Lawyers, our South Florida debt defense attorneys can help you explore your legal alternatives, from debt negotiation and consolidation to defending you in creditor lawsuits, defending you in foreclosure, or filing for bankruptcy. To schedule your free consultation with Loan Lawyers, contact our office today by calling (888) FIGHT-13 (344-4813).

  • ABC News
  • American Civil Liberties Union
  • CBS 4
  • CNN
  • Daily Business Review
  • Florida Trend's - Florida Legal Elite 2014
  • Florida Trend's - Florida Legal Elite 2014
  • National Association of Consumer Advocates
  • National Association of Consumer Bankruptcy Attorneys
  • NBC News
  • National Consumer Law Center
  • The New York Times
  • Avvo
  • Avvo
  • Avvo
  • Avvo
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