How To Easily Improve Credit Scores
Want to know a few ways to easily improve credit scores? Raising your credit score translates into qualifying for more loans and you'll be offered better interest rates. Here are a few easy methods you can use to improve your credit scores.
Get A Copy Of Your Credit Report
It's important to go to a
Ordering your own score is considered a soft inquiry and does not go against your score as long as you get your credit report from a legitimate service
Correct Errors
Did you know know that nearly three quarters of all credit reports contain errors. These errors can occur for a variety of reasons like an incomplete report or the credit report could contain someone else's' information.
Credit report errors can also be made from hand written applications when someone can't read your information correctly. Sometimes this information gets entered incorrectly and when it does it changes everything. Can you imagine if your Social Security numbers got entered wrong?
If you find any errors, make a copy of your credit report and circle every item you believe is incorrect. Then, write a letter to the reporting agency and explain each dispute you want resolved. Make a copy of any paperwork that supports your claim and send it with the copy of your credit report.
You can get the addresses of all three credit bureaus from the credit report. Remember, send only copies not the originals because this is your only proof. Send the letter by certified mail with return receipt requested, so that you can prove that the letter was received.
Next, send a similar letter of dispute to the creditor who reported that statement to the credit bureau that you disagree with. Just by contacting the credit bureau and correcting any mistakes you can improve credit scores once those mistakes are corrected and removed.
Bring Your Debt Ratio Down
One of the easiest ways to improve credit scores is to lower your debt ratio. If you have a credit card with a $5000 limit and you have a $3500 balance, your debt ratio is 70%.
But if your credit card company raises your limit to $7500, with the same $3500 balance, your debt ratio is now only 46%. A simple phone call to ask them to raise your limit can easily raise your credit scores. You want to be below 50% of your available credit limits in use to be in the ideal range.
Don't Close Old Credit Accounts
If you have old credit cards, even if you don't use them, leave the accounts open because you'll only raise your debt ratio if you close the unused ones. Credit scoring methods are modeled after how much available credit you have compared to your credit balance and also the length of your credit history.
Closing your old accounts shortens the length of your credit history and it makes you less credit worthy. So just by keeping older accounts open you can improve credit scores.
Anyone can easily improve credit scores by using these simple methods. Want to learn even more easy ways to improve credit scores? Visit Credit Secrets Bible the #1 best selling credit repair guide since 1992.
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