What is the best way to bring up your credit score and clean up your credit report?
Answers:
The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.
1. Re-payment history
This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.
2. Outstanding debt
The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.
4. The state of your financial accounts
How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more about it at: http://www.credit-card-gallery.com/artic...
Pay all your outstanding debts and pay your bills on time.
USE the credit you do have and use it responsibly. My credit is getting better just by me doing that. I haven't paid my old debts and they're falling off, anyway.
If you only have a few debts and they are small, you might try to call the companies and negotiate payment, in full, in exchange for them agreeing to REMOVE the debts from your three major credit reports. (get it in writing!) Usually, they only mark it as "paid", and that doesn't help your score much.
to raise credit score
1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
4. I was told by an underwriter that having just two cards, a major credit card (VISA, MC) and a consumer card (Sears, best buy, etc...) is the best mix for revolving credit.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
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http://www.bestcreditrates.net
pay bills on time, avoid debts
Making ontime payments over time will cause your credit score to climb.
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