We all are, sometimes painfully, aware of the importance of a good credit rating. The current economy has trashed many a formerly decent credit score! If you want to raise your credit score, take a look at these eight easy tips to accomplish just that. While this task isn't on many people's short list of fun things to do, it's really easy enough. Go through this list, step by step. You'll be glad you did.
1.Get a current copy of your credit report, either online or by stopping in at your local credit bureau. You're entitled to one free report each year, so this won't cost you a dime!
2.Go through your credit report, line by line, to ensure that each debt was incurred by you. If you want to raise your credit score quickly, this step is essential. Lots of people skip this step, thinking that items not belonging to them couldn't possibly slip in by mistake we're in the computerized age, right? Well, don't be shocked to find one, two or even more debts listed that aren't even yours. A few debts wrongfully attributed to you can make a real mess of your credit rating. Highlight these and immediately make a call, or fire off a letter to creditors claiming you owe them. By law, the creditor must, within 30 days, provide proof that you incurred the debt or remove the item from your credit report.
3.Now, check the remaining items for accuracy. Does the amount owed, shown on your credit report match up with your records? If not, find out where the discrepancy lies and contact the creditor for a reconciliation of your account.
4.If you're credit card rich and cash poor, you may want to consider consulting a debt consolidation organization, which typically allows you to make a single monthly payment to pay off several debts in one monthly payment which is less than the total amount you're now paying for the several. This step not only helps raise your credit score, but also improves your cash flow ... always a good thing! :)
5.If you have any minor old debts that you've forgotten about, use any funds freed up by debt consolidation, or just squeeze your budget any way you can to get these cleaned up. Start with the smallest amount and work them off one by one.
6.How closely does your budget match up to reality? That budget may need a good trimming! Expenses you might not have considered luxuries a year ago can be blowing a big hole in your wallet this year. Be ruthless! Cut out unnecessary expenses. When you're trying to raise your credit score, your goal is to make your lifestyle conform to your current income.
7.After making the necessary budget adjustments, set aside the money you no longer spend for unnecessary luxuries, in a fund earmarked for use in making timely payments on all your current debt. If you can make a payment which is greater than the required minimum, do it! In any case, make every payment on time. Ironically, you won't raise your credit score by using the 'shotgun' approach to pay off one credit card or other monthly loan payments. Creditors view this as a sign of unreliability! They want the contract fulfilled just as it was set up. Actually, I suspect they really just want all the interest anticipated when the loan was made, ya think?
8.Finally, do not ever make the mistake of applying for new credit when you hope to raise your credit rating. Every time you apply for credit and are turned down or don't avail yourself of taking a loan you applied for, your credit score goes down.
Follow these eight steps to raise your credit score. You'll get good results!
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