Credit Improvement Tips

The very first step in improving your credit is to find out exactly what your credit score is. To get this information you simply need to obtain a copy of your credit report from the credit reporting agencies which keep records of this information.
After you gain access to your credit score there are several other things you can do to raise and improve your credit score. Limiting how much you use your credit cards and keeping your balances as low as possible are a couple of ways which can be very helpful in credit score improvement.

Credit Card Use

High credit card balances can result in low credit scores. This is true even when you pay the full balance each month. Keeping these balances low can have a positive impact on your credit score. This is because lenders tend to look favorably upon individuals who use less credit than what is available to them.

There are many other items which may cause a person to have a low credit score as well. Some possible items which may have a negative impact sometimes include items which should have been removed or erased from your credit history. For example, items that were included in a bankruptcy filing or items which were sent to a collection agency but later paid. When this happens it is very important to file an official dispute that these obligations were previously satisfied. It is also important to provide as much written proof as possible to substantiate the claim that a mistake has been made.

It is important to remember when you send this written proof to the credit reporting agencies that you keep the original documentation for your own records. You never know when there may be another problem requiring these documents. Instead make copies and send these to the credit agencies.

Once this proof has provided it is the responsibility of the credit agencies to perform an investigation. This is done in an effort to validate the claims of the dispute. If information is discovered which indicates a mistake actually was made it must then be corrected. Once this occurs this information can no longer be used against your credit score.

When making attempts to improve your credit score it is essential that you pay any and all financial obligations on time. Doing this over an extended period of time will improve your credit score but it does take awhile to achieve this.

In time you will begin to see an improvement in your credit score provided you have done and are continuing to do everything in your power to ensure this improvement. One place this improvement may be seen is in interest rates. The higher your credit score is the lower your interest rates will be.