Improve Credit Score

You are not happy with your credit score. You want it to be higher so that you can get better deals on all credit products including a mortgage. How do you achieve this without much effort and great strain on your budget? Use the three super effective methods described here.

Pay all bills when they are due.

Since 35% of your credit score is determined by payment history, it is absolutely mandatory that you pay all bills which you have on time. These include not only utility and cell phone bills, but also insurance premiums and personal loan installments. You must not be late with rent or mortgage payments.

In order to ensure that you are never late with bill payment, you must have a well prepared budget every month and adhere to it strictly. Try to plan all of your expenditure and to leave some spare cash for emergencies, if possible. Use all methods for saving from coupons to discount deals. Use a bill payment app or a similar tool to plan and schedule the payments to ensure that you will never be late just because you have forgotten when the due date is.

Achieve low revolving credit utilization.

This may sound complex, but it is actually simpler than you think. In order to calculate your revolving credit utilization ratio, you need to divide your total outstanding credit card balance by the sum of the limits on all cards which you have. Then you need to multiply the number by 100 to get a percentage. Basically, this ratio shows what portion of the available credit you use. Ideally, it would be between 20% and 30%.

It is important to achieve this goal since utilization accounts for 30% of your credit score. There are two ways to do it. The first one is to reduce your credit card spending. The second one is to have the balances on your cards increased. You have high chances of getting your request approved if you have good and sufficiently long credit history with the respective lender.

Keep old credit cards and avoid new loans.

This is a really simple and straightforward method that anyone can use to get good results. This is because the credit history makes 15% of a person's credit score. The longer you have kept a card for, the better your credit history will be. You can readily use an old card for paying a few bills or making one or two small purchases. As you keep repaying the debt promptly, you will see a boost in your score.

At the same time, with new loans, you will get a lower debt-to-income ratio and this will have an adverse impact on your credit score. That is why you should stay away from borrowing fairly big sums until your score is improved. If you absolutely need to get cash, however, you should not hesitate to shop around. This is because all of the inquiries which you make count as one for scoring.

Use all of these methods for improving your credit score and the strategy will pay off sooner than you think.

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Credit Scores

Your credit score can impact nearly every aspect of your life. It can control whether you can obtain a mortgage, auto loan, or even a job. With this said, it is vital that you understand how to improve your credit score. Federal law requires that everyone have access to one free credit report per year. The reason this law exists is to allow individuals to verify that their credit reports are accurate. If there is inaccurate information listed on your report, by law you have the right to dispute the inaccuracies; the credit bureaus have 30 days to investigate and respond to the disputed items. If the creditor who put the disputed item on your credit report cannot provide proof that you are responsible for the debt, it should be removed. To obtain a copy of your free credit report you can call 877-322-8228, or mail a request to annual credit report request service, P.O. Box 105281, Atlanta, GA 30348-5281.

After you have received a copy of your free report and have reviewed it for any inaccuracies; you will need to dispute them directly with all three credit bureaus. The bureaus include TransUnion, Experian, Equifax. Once you have verified the information on your credit report is accurate, you can then use the following suggestions to help you increase your scores.

• Make Your Payments On-Time - The single most important thing you can do to improve your credit score is to pay your bills on time. If you have had late payments in the past because you simply forgot to make the payment, you may want to set up automatic payment arrangements to pay your bills. This will ensure that your bills are paid on time.

• Credit Card Balances - Credit cards (revolving credit) account for 30% of your score. To maximize your score, you should always keep your revolving card balances below 30% of their available limit.

• Credit Availability - Your scores are calculated based on your unused available credit, how much credit is open, and the length of your credit history. The length of your credit history accounts for 15% of your score. Based on this factor, it would be in your best interest to keep your revolving cards open instead of closing them, because closing old revolving cards would significantly shorten the length of your credit history. To keep a revolving card open, you should use the card at least once every six months. This will keep them from being inactivated.

• Lack of Credit - Unfortunately, if you have very little credit because you pay cash for everything; you probably also have a low credit score. Scores are only determined by the activity reported on your credit report; cash purchases have no bearing on your current score. Therefore, you want to have at least one installment loan and two revolving accounts open at all times. If you are having trouble getting credit, you could apply for a secured card from a local bank or credit union, or you could ask a relative or significant other if you could become an authorized user on one of their revolving cards. Becoming an authorized user will give you an instant payment history. Just make sure that the account you are going to become an authorized user on does not have late payments, or has a balance near the accounts limit.

• Judgments and Collections - If you have a judgment or collection that originated years ago, when you pay or satisfy the derogatory item it may temporarily lower your credit score. Keep this in mind if you plan to apply for credit. You may want to delay paying off old collections right before applying for a mortgage or auto loan.

There are many other ways to help increase a credit score; but keeping your payments on time, managing your debt properly, and having a reasonable amount of available credit are the easiest ways to ensure an acceptable score. Just remember, derogatory credit will immediately lower your scores, whereas making your payments on time and keeping your balances low may take as long as six months to recover from one negative item reported on your credit report.

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Healthy Credit Score

A great credit report is essential to getting the most out of life. Credit scores range from 300-850. The higher your score is, the more likely you are to get a loan. The lower your score is, the less likely you are to get a loan. If you have a low credit score and you do manage to get approved for credit then your interest rate will be much higher than someone who had a good credit score and borrowed money. Therefore, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card. While is does take 7 years to remove most derogatory items from your credit report. These are some steps you can take right now to improve your credit.

1. Pay all your bills on time, every time. Not just your credit cards & loans. While certain bills are not reported to the credit bureaus when your payment is made on time, they could potentially end up on your report if you fall behind. Your payment history is very important & accounts for 35% of your total score.

2. Check your credit report at least once per year, if not more frequently to avoid identity theft and mistakes which are especially common today you should certainly keep a close eye on all three bureaus reports.

3. At no time should you charge more than 30% of your available balance on any of your credit cards. If you are carrying a high balance then make paying them down a priority.

4. Keep your accounts open as long as possible. 15% of your credit score is length of time on file. Even though your no longer making purchases with a particular card. The best approach is to keep those accounts open and use them every few months making small purchases, then paying them off.

5. Don't open a lot of accounts at once. Each time you apply for a credit card your credit is checked by the issuer. These hard inquires could affect your score and potentially cause lender to consider you a bigger credit risk.

6. Transfer your balance if you're carrying a high balance on your credit cards you can transfer your balance to a new balance transfer card, preferably one that offers 0% intro APR for up to 18 months. This will increase your limit & give you time to pay the balance down without being charged any extra interest.

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Credit Repair Service

If you want to improve your credit scores in the best possible way it is advisable that you should hire a successful credit repair service provider and try to know about the benefits that you are able to get from this type of provider.

If you suffer due to poor credit scores and if you wish to repair them in the best possible way, it is vital that you should take the help of an experienced credit repair service provider as quickly as possible. If you wish to hire him for your requirement, it is advisable that you should first gather information about the benefits that you are able to get from him. This article will highlight on a few benefits that are offered by this type of provider for best possible results.

If you wish to do it on your own, there is every possibility that you need to gather adequate knowledge so that you should be tackle it as much as you can. However, if you hire him, there is every possibility that you do not have to handle all these things by yourself. In fact, he will work on your behalf and he will often spend time in order to find out what exactly he should do in order to improve it in the best possible way. When you hire this type of provider there is possibility that you will be able to repair your poor credit scores within a short period of time.

If you have to handle this type of job on your own, there is possibility that you will have to gather an adequate amount of knowledge in order to accomplish this type of work on your own in an effective way. However, if you hire this type of provider who has long years of experience and who also has accumulated relevant skills, there is possibility that your goal to improve these scores will be handled in the best possible way.

When you hire him there is possibility that he will work hard in order to do it in the best possible way. In fact, you will get sufficient amount of time in order to focus on other important activities.

It is vital to remember that if you take his in this matter, there is possibility that you will be able to get a wide array of services. There are a few credit repair providers who can request you to tell them in details about incorrect information and who can help you to remove wrong information as quickly as possible. Plus, they can send letters to the creditors or even to credit reporting bureaus and they can request them to remove the wrong information as quickly as possible. There are other such providers who often send letters to the creditors and who often request them to prove if particular information that has been mentioned in this type of report is correct. All they need to do is to request them to remove incorrect details as quickly as possible.

Before you decide to take the help of this type of provider, it is vital that you should remember a few essential things in this matter. It is important to note that if you hire this type of provider it is quite obvious that he will need at least twelve months so that he can complete this type of task in a successful way.

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Credit Report Errors

We live in the age where intrusion is a common phenomenon. Big Brother is not the only one that is watching you. Financing companies, banks and auto lenders also monitor your credit report and analyze the confidential financial information that is provided in it.

And, if there is an error on your credit report, it can create massive problems for you. It can increase your interest rate, obstruct you from getting a job or prevent you from buying a car. A study by FTC has revealed that one in every five customers has an error on his/her credit report. So, you must check it for any errors and remove them at the earliest.

What are the Common Credit Report Errors?

Inaccurate Identity Information

The three foremost credit bureaus - Equifax, Experian and TransUnion collect information of every American. They commit errors because of two main reasons: massive data management and human involvement. Following are the examples of errors:

1. Incorrect Name and Address

2. Error in Employment Information

3. Mistake in Social Security Number

Errors in Financial Information

A bank or a financing company may pass inaccurate information to a credit bureau. Also, a credit bureau can commit errors while processing your financial information. The most common financial errors include:

1. Unwarranted Financial Transactions

2. Duplicate Entries

3. Incorrect Origination Date of Mortgage

4. Out-Dated Bad Debts Record

5. Bankruptcy Information older than 10 Years

Existence of Fraudulent Accounts

According to Javelin Strategy and Research, 13.1 million Americans were victims of identity fraud in 2013. The number shows how commonly a person's information is misused in order to access money.

So, while checking your credit report, you must pay attention to any unwarranted line of credit. If you find any unjustified auto loan, credit card or home mortgage, contact the credit bureau immediately and opt for a security freeze on your report.

How to delete Errors from your Credit Report?

Do not worry about errors on your report, here's a step-by-step procedure to help you remove them:

Collect Evidence

If you think there is an error on your credit report, you must collect evidence to support your claim. It will help you in proving the relevant credit bureau wrong. Also, it will ensure faster results. For example, if you think that the auto loan origination date is inaccurate; you must find the auto loan contract and show the accurate date to the credit bureau.

To remove errors from your report, you must dispute it with the relevant credit bureaus. Highlight all the errors and attach evidence. You must also write a letter to the credit bureaus and explain your situation in detail.

Inform the Relevant Credit Reporting Agencies

Credit reporting agencies such as banks, credit card companies and lenders provide financial information to credit bureaus. It helps the credit bureaus in keeping track of your financial situation. They have a legal responsibility of investigating your complaints. So, if a bank is providing incorrect information, inform the bank authorities immediately.

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Credit Card With No Credit History

Money which can be used to buy anything we want, yet which we do not hold, feel and count in our hands. Money which can both save our lives and destroy it. Money is a necessity and our entire life revolves around it, right from figuring out means of earning it to how to spend it and our efforts to save it for a better future.

The modern concept of money doesn't involve its physical presence, but rather presents itself in the form of a card, a magical card which can instantly make wishes come true. The Credit Card has revolutionised money, transcending physical boundaries and opening up multiple new avenues. There are cases where the only item we need is our credit card and the prospect of carrying money has changed drastically.

Who are the people with no credit history?

Credit History is associated with everyone who has used a credit card for any purchase. The people with no credit history are mostly students and new immigrants in a country, who have never taken out loans. In the case of card applications, an individual with bad credit history has a better chance of getting a credit card than a person without any credit history. There are however avenues to get a credit card with no credit history.

Individuals who wish to apply for credit cards without any history can choose from some of the options below, which can significantly improve their chances of getting that elusive cards.

    Student Card - Most major banks and financial institutions offer exclusive student cards targeted towards the student community. These cards do not require an applicant to have previous credit history and can be obtained if the individual meets certain criteria. Having a job can make it easier to get the card approved and banks prefer to hand out this card to those who have a source of income.

    Pre-qualification Test- Certain banks allow individuals with no credit history to take a pre-qualification test online. This test lets them know if they can get a card approved and the reasons why the card was denied, if it is rejected. This information could help one prepare better the next time they apply for a card.

    Store Credit Card - Certain nations have the concept of store credit cards, which are easier to get and do not need any credit history. These cards have low credit limit and high interest rates and generally have cards which are not Visa or MasterCard approved.

    Prepaid Cards - Individuals with no credit history but with disposable income at hand can apply for prepaid cards. These cards are as good as normal credit cards but the credit ceiling is limited to the prepaid amount. There is no fear of exceeding credit limits or late fees with these cards.

    Co-signed cards - Banks offer co-signed cards for people with no credit history. These cards require someone with decent credit to co-sign for you, with their financial backing increasing your chance of approval. Co-signed cards can be a smart move if you have someone who trusts you and is willing to sign on your behalf, though they also allow your financial transactions to be viewed by the co-signee.

    Secured Credit Card - Secured cards are similar to normal credit cards in most aspects, except the fact that one needs to make a security deposit in order to be eligible for a credit limit. Individuals without credit history can choose this card if they have suitable security deposits with them, which will essentially guarantee them the credit card.

Applying for credit cards without any history can be a tedious and long drawn affair but one has to remember that applying with any and all banks is not a smart thing to do. Rejection is a part of this process and one has to be smart enough to choose the alternative cards mentioned above in case of rejection. Getting any of these cards approved is likely good enough to get an individual a credit history, making it easier for them to get better credit options in the future.

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Improve Your Credit Score

Repairing credit score is more like losing weight, which is a time taking procedure. Most importantly, there are no quick solutions that can help you fix your credit score. In fact, every solution that you find out for improving it can actually backfire, so you must stay aware of all those advice that guarantee a quick improvement. Advice that you can consider for rebuilding your credit score is managing it responsibly and sensible over time. Before you start rebuilding your credit score, you must take a look at your credit history and make efforts to improve it.

Here Are A Few Tips That You Can Help You Make Some Serious Improvements In Your Credit History:

Verify Your Credit Report:

Credit score repair begins with your credit report. If you haven't checked your credit report yet, ask for the free copy of it and find all the errors hidden inside it. Your report forms the most crucial element that helps in calculating your credit score, which might contain some error. To be more specific, make sure that there are no errors in your credit report. Your report must not contain any late payments. If you find errors of such kind, immediately issue a dispute report with the credit bureau. Apart from these, you can also look for some expert help in credit reports and repair.

Set Reminder for Payments:

One aspect that can really help you to improve your report for credit scores is on time payments. Make sure that you have made all your credit payments within the legitimate time span. Even if you forget your payment dates, consider setting reminders. There are many banks that ease their clients by allowing payment reminders via text messages or emails. Apart from this, you can also opt for automatic payment methods.

Reduce All Your Debts:

It seems much easier to say, but making it happen is actually much tough. Reducing the amount of debt you own in the market gives you much satisfaction than increasing your score for credit. While reducing your debt, the first thing that you must do is stop using your credit card. Make use of your credit report to prepare a list of all your accounts and then go online to check all your recent statements.

These are a few tips that can actually help you increase and improve you score of credit. Apart from these DIY steps you can also opt for some professional help for repairing your credit report.

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