Ways to Improve Your Credit Score

On the home page we discussed what makes up a credit score. Before we address how to boost credit scores, lets revisit the simple credit score math equation.

To summarize, the length of time since your first open credit account makes up 15% of your credit score. Your past payment record makes up only 35% of your credit bureau score. The types of open accounts, applied for vs. un-applied for credit, makes up 10% of your credit bureau score. Your balances vs. credit limits makes up 30% of your credit score. And the amount of recent credit makes up 10% of your credit score.

Start Fixing Your Credit Score Now

Dispute Credit Report Data that is Inaccurate, Erroneous or Obsolete

When you dispute credit report data,the originating source has 30 days to verify the information they placed on your report. If the information is not verified within 30 days, by law the item should be removed by the credit reporting agency.

Pay "Applied for Credit" Items on Time

35% of Your Score

Some items only show up on your credit report if you do not pay them. Such items are called Non-Applied for Credit. In other words, you did not apply for credit with the company that is reporting the debt. Non-Applied for Credit items include:

Medical Bills
Utility Bills

Civil Judgements
Checking Account Overdrafts

Applied for Credit items show up on your credit report and account for an additional 10% of Your Score. These items include a payment history, typically for the last 24 months. When considering whether or not to approve a loan or credit request, creditorspay more attention to Applied for Credit Items such as:

Credit Cards
Auto Loans

Home Loans
Store Credit Accounts

It is strongly recommended that all Applied for Credit items be paid via an automatic debit to your credit card or checking account. Utilizing a direct debit will ensure that payments to your creditors will arrive on time.

If you do not have a checking and savings account, apply for both. Having these accounts establishes you as part of the financial community and allows you to manage your money. Many people with credit problems, however, may not qualify for a bank account in which they can setup automatic bill payments. When this is the case, we recommend the following services:

Account Now® - Works like a checking account with no credit check, no up-front fees, and no overdraft fees with direct deposit.

Keep Credit Card Balances Below 35% of Available Credit

30% of Your Score

If you currently have a credit card and you owe more than 65% of your credit limit, ask your creditors to increase your credit limit or pay down the balance as quickly as you can. This will improve your credit balance vs. credit limit ratio and improve your credit score.

Get New Credit

10% of Your Score

Apply for a gas station or retail outlet charge card. These are usually easier to obtain than other credit cards.

Get a secured credit card. You will be required to deposit a specified amount, usually $300-$600, into an account with the bank issuing the card. Then you will be issued a major credit card with a balance that reflects the amount of your deposit.

Take out a small loan from your credit or union or bank. Deposit the monty into your savings account and pay the loan back monthly.

Wait and Grow Old

15% of Your Score

If nothing changes on your credit report, your credit score will improve as time passes.

Credit Repair Info Free Credit Score Fix Your Credit Score Debt Help Programs Credit Boosting Tips Dispute Credit Report Secure Credit Cards DIY Credit Repair