Pay Off Debts and Improve Your Credit Rating
You should check your credit rating with all three of the major credit bureaus, Experian, TransUnion, and Equifax at least once a year because hard as it might be to believe more than one third of all credit reports in the U.
S.
contain errors.
Make sure that the reports contain credit scores or they'll be virtually useless and be aware that around 694 is an average score and below 600 means that you have a bad rating.
You'll hopefully never see the lowest credit score which is 300 and although I'd love you to have one of 750 which is tops, be very thankful if you can get one of 720 which is excellent.
If your credit report has any errors then dispute them by sending the company any details and copies of documents that you believe might help, by certified mail, and be aware that there is no cost involved.
Here's How To Improve Your Rating Fortunately the main contributing factor to a bad rating should be the easiest to fix if you're determined to do it.
You need to reduce your debt to credit ratio which in the simplest terms, means reducing your debts across all open lines.
Your debts should never amount to more than 80% of available credit and if you can get it down to 50% then you'll be well on your way to a good credit rating because reducing debts improves a credit score faster than anything else.
Focus on reducing the number of small retail cards such as JC Penny, Sears and Lowe's because those types of cards damage your credit rating far more than the major credit cards like Master Card and Visa do.
Once things are under control and improving, contact companies with whom you have bad credit and start paying them off, even slowly if necessary and try to see if they'll reopen an account.
This will have a big effect on your credit rating and will be worth the 'goodwill deposit' that they might insist on.
If at some point you need a new loan then check your credit rating online and try to ascertain that you'll be approved before the application is submitted and you can do this by asking right up front what the chances are of getting the loan with such and such income and with the credit rating that you have.
The idea here is to keep the number of credit card enquiries on your report to a minimum.
S.
contain errors.
Make sure that the reports contain credit scores or they'll be virtually useless and be aware that around 694 is an average score and below 600 means that you have a bad rating.
You'll hopefully never see the lowest credit score which is 300 and although I'd love you to have one of 750 which is tops, be very thankful if you can get one of 720 which is excellent.
If your credit report has any errors then dispute them by sending the company any details and copies of documents that you believe might help, by certified mail, and be aware that there is no cost involved.
Here's How To Improve Your Rating Fortunately the main contributing factor to a bad rating should be the easiest to fix if you're determined to do it.
You need to reduce your debt to credit ratio which in the simplest terms, means reducing your debts across all open lines.
Your debts should never amount to more than 80% of available credit and if you can get it down to 50% then you'll be well on your way to a good credit rating because reducing debts improves a credit score faster than anything else.
Focus on reducing the number of small retail cards such as JC Penny, Sears and Lowe's because those types of cards damage your credit rating far more than the major credit cards like Master Card and Visa do.
Once things are under control and improving, contact companies with whom you have bad credit and start paying them off, even slowly if necessary and try to see if they'll reopen an account.
This will have a big effect on your credit rating and will be worth the 'goodwill deposit' that they might insist on.
If at some point you need a new loan then check your credit rating online and try to ascertain that you'll be approved before the application is submitted and you can do this by asking right up front what the chances are of getting the loan with such and such income and with the credit rating that you have.
The idea here is to keep the number of credit card enquiries on your report to a minimum.
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