Credit Score Improvement Tips

A lot of people believe that credit score improvement is next to impossible. In actual fact, there are a few systematic steps you can follow to help you repair your credit score. You can either do these things on your own, or hire a credit repair organization to do them for you.

Why would you want to improve your credit score? Your score is taken into account by all sorts of financial institutions, including insurance companies, mortgage brokers and many employers. Having a good credit score can drastically improve the financial options available to you. If you need credit for a project - for instance, starting a business or buying an investment property - your credit score could make or break you.

The first step to improving your score is getting hold of your free credit report from each of the three bureaus and checking for mistakes. The easiest improvements in your score will come from removing items that shouldn't be on your record in the first place. If you find any mistakes, write a dispute letter to the bureaus and have them removed.

After you've dealt with any mistakes on your report, there's a fairly simple general rule to follow for improving your credit score. Basically, the less money you owe, the better your credit score will be. On top of that, the fewer options you give yourself for borrowing money, the better your credit score will be. That means closing any credit accounts that you don't absolutely need. Ask yourself if there are ways you can rearrange your finances to reduce your debt and close some accounts.

Always pay down your debts and bills before their due dates. Every time you miss a payment on a credit card, you can bet that information will get relayed from the creditor to the credit bureaus. Missing payments is a great way NOT to have credit score improvement, so create a budget, stick to it, and make payments on time, every time.

Likewise, refraining from opening new accounts will help you improve or at least maintain your score. Every time an authorized inquiry is made into your credit history - for instance, when you apply for a new credit card - it has an adverse effect on your score. Chances are, you don't really need that next credit card - you may want it, but you don't need it. Think outside the box and find another way to get what you want without damaging your credit score.

If you decide to hire a credit repair company, make sure you shop around and compare fees. Ask people you know if they have had dealings with any reliable companies in this field - there are a lot of scammers out there, so do you due diligence and avoid getting swindled at the worst possible time.

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