Credit Report Repair Advice
5 Ways To Raise Credit Score
By Gary Gresham
It's not as hard as you think to raise credit score. It's a well known fact
that lenders will give people with higher credit scores lower interest rates
on mortgages, car loans and credit cards. If your credit score falls under
620 just getting loans and credit cards with reasonable terms is difficult.
There are more than 30 million people in the United States that have credit
scores under 620 and if youíre probably wondering what you can do to raise
credit score for you.
Here are five simple tips that you can use to raise credit score.
1. Get a copy of your credit report
Obtaining a copy of your credit report is a good idea because if there is
something on your report that is incorrect, you will raise credit score once
it is removed. Make sure you contact the bureau immediately to remove any
Your credit report should come from the three major bureaus: Experian, Trans
Union and Equifax. It's important to know that each service will give you a
different credit score.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score. Your recent
payment history will carry much more weight than what happened five years
Missing just one months payment on anything can knock 50 to 100 points off
of your credit score.
Paying your bills on time is a single best way to start rebuilding your
credit rating and raise credit score for you.
3. Pay Down Your Debt
Your credit card issuer reports your outstanding balance once a month to the
credit bureaus. It doesn't matter whether you pay off that balance a few
days later or whether you carry it from month to month.
Most people donít realize that credit bureaus donít distinguish between
those who carry a balance on their cards and those who donít. So by charging
less you can raise credit score even if you pay off your credit cards every
Lenders also like to see a lot of of room between the amount of debt on your
credit cards and your total credit limits. So the more debt you pay off, the
wider that gap and the better your credit score.
4. Donít Close Old Accounts
In the past people were told to close old accounts they werenít using. But
with today's current scoring methods that could actually hurt your credit
Closing old or paid off credit accounts lowers the total credit available to
you and makes any balances you have appear larger in credit score
calculations. Closing your oldest accounts can actually shorten the length
of your credit history and to a lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the peace of
mind for you to close your old or paid off accounts, the good news is it
will only lower you score a minimal amount. But just by keeping those old
accounts open you can raise credit score for you.
5. Stay Out Of Bankruptcy
Bankruptcy is the single worst thing that will destroy your credit score.
Bankruptcy will lower your credit score by 200 points or more and is very
difficult to come back from.
Once your credit score falls below 620, any loan you get will be far more
expensive. A bankruptcy on your credit record is reported for up to 10
The reality of a bankruptcy is it will limit you to high-interest lenders
that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid
bankruptcy at all costs. By getting credit counseling instead of declaring
bankruptcy you can raise credit score over a much shorter period of time.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
Gary Gresham is a mortgage loan officer and the webmaster for http://www.credit-repair-facts.com
He offers you credit information, debt elimination programs and informative
facts that give you the knowledge to correct your own credit and credit
report. For more credit related articles go to: http://www.credit-repair-facts.com/articles_1.html
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