How To Improve Your Credit Score in The New Year
Its 2009! A new year means a new beginning, and is a perfect opportunity to improve your credit score. As a result of the sub-prime credit and lending crisis, lenders now want a spotless credit report to approve new credit.
This means that it is more important than ever to raise your credit score. So, lets get started on your road to improving your score.
First, to raise your credit score, you need to understand how your credit is calculated. Your credit report contains data including your payment history, debt total, and available credit.
This information is strategically placed in a mathematical algorithm, and then calculated to create your credit score. The determined number is a accurate prediction of how likely you are to pay your debt.
The highest possible credit score is 850 and the lowest is 300. The average American has a score somewhere between 600 and 800. To really benefit, you must increase your credit score so it is at least in the average range.
The next and most significant step is to dispute credit information that damages a good credit score. This includes; collections, late pays, repossessions, charge-offs, bankruptcy, and judgments.
About a quarter of all credit reports have an error that is serious enough to keep a consumer from receiving credit approval. And, another large amount of credit reports contain mistakes that force a consumer to pay higher interest rates on big ticket items like mortgages or car loans.
When you improve your credit score, youll save money, time and embarrassment. Mistakes can end up on your credit report for numerous reasons, including: mistaken identities, identity theft, and administrative mistakes.
Regardless of the reason, if you want to improve your credit score, you must dispute any errors you find. When you find an error, you should create a letter to send to the credit bureaus and ask them to investigate.
Thanks to the unstable economic times, its more important than ever to improve your credit score.
By taking the steps listed above, youll be on your way to a stellar score, and a better life.
This means that it is more important than ever to raise your credit score. So, lets get started on your road to improving your score.
First, to raise your credit score, you need to understand how your credit is calculated. Your credit report contains data including your payment history, debt total, and available credit.
This information is strategically placed in a mathematical algorithm, and then calculated to create your credit score. The determined number is a accurate prediction of how likely you are to pay your debt.
The highest possible credit score is 850 and the lowest is 300. The average American has a score somewhere between 600 and 800. To really benefit, you must increase your credit score so it is at least in the average range.
The next and most significant step is to dispute credit information that damages a good credit score. This includes; collections, late pays, repossessions, charge-offs, bankruptcy, and judgments.
About a quarter of all credit reports have an error that is serious enough to keep a consumer from receiving credit approval. And, another large amount of credit reports contain mistakes that force a consumer to pay higher interest rates on big ticket items like mortgages or car loans.
When you improve your credit score, youll save money, time and embarrassment. Mistakes can end up on your credit report for numerous reasons, including: mistaken identities, identity theft, and administrative mistakes.
Regardless of the reason, if you want to improve your credit score, you must dispute any errors you find. When you find an error, you should create a letter to send to the credit bureaus and ask them to investigate.
Thanks to the unstable economic times, its more important than ever to improve your credit score.
By taking the steps listed above, youll be on your way to a stellar score, and a better life.
About the Author:
For a free credit consultation call 1-866-246-7311. Or for a free credit dispute letter or a credit repair e-book visit us.
posted by Debt Consolidation Loan at
9:49 AM
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