10 Proven Ways to Improve Credit Score

Everyone should know what makes up your credit Score. 

If you are thinking for a fast track solution do know these three thumb rules

Do you really need to pay a credit repair company to increase their score? - No

Will getting married help raising their credit score ? - No

Will doing on-time payments each and every month give their Credit Score a boost? - Yes

Well the first thing you want to to do is get a copy of your Credit Report. There are three major credit reporting companies who does give you one free credit report per year, so plan to order one each quarter & start working on following points as soon possible.

1. Erase the Dents

Erase your old disputes, negative information on your credit history, Once its marked it normally stays for seven years if not updated by Lender or challenged by you. Best approach is to contest any such records that are incorrect or a result of identity confusion or other manual mistakes.

2. Pay off your debt

Paying off debt is the best way to do make denominator of your credit utilization ratio bigger, it’s time to focus on making the numerator smaller. By lowering your total debt owed, you lower the total amount of interest you pay.

3. Negotiate

If you had stopped paying a credit card bills in past, do try to negotiate with your creditor now. Write a letter offering to pay the remaining balance if the creditor agree to mark the account as “paid as agreed” or erase it altogether. (Note: Visit a branch and get the creditor to agree in writing before you make any payment.)

4. Get a credit card. 

It seems simple, but then you start a new line of credit. Once you start using it and paying back in time, you are making a good line of credit which would help nullify the bad credit score. Having credit cards will do good things to your .

5. Raise your credit limit. 

Increasing your credit line will develop your credit utilization ratio, which is the percentage of your credit limit you’ve used in a month, and help improving your credit score. Do request your creditor to increase your Credit limit, i.e. upgrading the limit of your Mastercard/Visa up to $2,000. Be it’s a double edge sword. Don’t increase your spending habits accordingly. Don’t use more than 50% of your credit limit. Few credit card companies give you the option to request a credit line increase without a credit inquiry. If it is so then take it. If they want you to furnish additional information and plan to pull-up your credit report then do cancel the application, because a tough credit check will hurt your score.

6. Charge Less

The credit take your Credit card’s statement’s closing balance, even if you pay it in full that same period. If you want to give your Credit score a boost, use your credit cards less and lower your statement balances. 

7. Pay On Time - Don’t be late. 

Making on time payments every month is key to staying on top of your debt and maintaining your score. It sounds odd, but improve your credit score.

8. Patience is the Key

If you have a dark marks on your credit history , if you’ve filed for bankruptcy, it will take years to get you back in game . In best cases, it takes about 7 to 10 years to erase the negative effects of a bankruptcy filing from a Credit Report.

9. Don’t become a Identity Theft Victim. 

If a thief steals your identity and starts creating new accounts and building up debt in your name you credit scores can be ruined quickly. Do review your account statements carefully each month to spot any errors and alert immediately to your card issuer if you see any problems. 

10. Maintain Accounts in your own name.

If you are unemployed or College students and use someone else’s  with accounts it’s time to set up some accounts in your own name. That will help you start building your own credit history. Accounts with monthly bills, utilities or credit card bills would can help fill out your credit history.