Credit Score

Credit Report - How to Improve Your Credit Score

One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score. This can make it difficult for people with problem credit to try to improve their score in hopes of obtaining a home or car loan later.

While the exact formula is a secret, there are a few things you can do that will undoubtedly improve your score:

Pay off a home equity line of credit. These loans, which allow you to borrow more than once against your home's equity, are considered revolving credit, much like a credit card. Pay it down or pay it off; either should help your score.

Check your credit report regularly; you are entitled to a free copy of your credit report once a year. By looking over your credit report, you can make sure that debts you have paid on time are shown on the report, such as student loans, or auto loans that have been paid in full. You can also make sure that your credit limits on your credit cards are reported correctly. Lenders look at the ratio of debt to available credit, and if your reported credit limit is low, it could make it appear as though you are nearly at your credit limit.

Check for duplicate information on your credit report. If your mortgage has been sold to another firm, make sure that your report doesn't show your mortgage twice.

Keep balances on credit cards and other revolving accounts low. You do not want to be seen owing too much money to too many different lenders.

Don't have too many open credit accounts. Ten Visa cards will not help your credit rating. Try to keep a maximum of three revolving credit accounts.

By checking your credit report regularly, and by eliminating unusual entries, you should be able to increase your credit score. And with credit, every little bit helps.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com/ and http://www.HomeEquityHelp.net/

Credit Score News:

Bing: credit score site:msnbc.msn.com
Search results

What credit score do I need for a mortgage?
Mortgage lenders have gotten a lot more tight-fisted in the current credit meltdown. So just how low can your credit score be ? and still get approved?
What's a credit score? Consumers still not sure - Business ...
What's a credit score? Consumers still not sure Survey says most believe scores are free. They're not Below: x Jump to discuss comments below
Red Tape - Lawsuit: Credit score sites mislead consumers
Confused about your credit score and where to get it? That's intentional, according to a new lawsuit filed in a California federal court. Many consumers ...
How can I fix my credit score? - Business - Answer Desk - msnbc.com
Maybe it's the rising tide of spam offering "credit repair" but a number of readers have been asking how they can increase their credit score. While it's a ...
ConsumerMan: Your credit score - Business - Personal finance ...
It?s the three-digit number that can have a huge impact on your life ? now and in the future. I hear from a lot of people about their credit scores. In ...
Red Tape - 5 Red Tape Traps: Getting a credit score
You know you need to know your credit score, but how do you get it without getting shafted? Credit scores serve as the report card for consumer adulthood ...
ConsumerMan: Credit score Q&A - Business - Consumer news ...
Your credit score controls so many aspects of your life: whether you can rent an apartment or get a car loan or a mortgage. But most of u don?t have a ...
When your mortgage application is rejected - Business - Real ...
Fortunately, a rejection shouldn't bring down your credit score, says Craig Watts, public relations director for Fair Isaac Corp. Making a formal application ...
Insurance firms blasted for credit score rules
Insurance firms blasted for credit score rules If your credit history changes, be prepared for a rate hike in your premiums Below:
How to improve, and keep up, your credit score - Business ...
As you prepare to shape up your finances in 2010, you'll find that improving your credit score is among the more complicated tasks. You may be bewildered ...

Newsfeed display by CaRP

Personal Finance Info

Credit Score