You Can Repair Your Credit Score!

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Many people are finding it difficult and very expensive to finance autos and homes because of our credit scores. The lower your credit score the higher the interest rate you will be charged. It can be very frustrating to learn you have to pay as much as double what someone with a good score would pay! You can take back control of your credit and increase your score!

The very first thing you need to do is to obtain a copy of your credit report. Legally every American is allowed one free copy per year. Keep in mind that there are three major credit reporting agencies, and you will need a copy from each one!

Experian, Equifax and TransUnion are the main agencies that get checked when your credit is run. You can request a copy from each of these agencies once a year. The importance of doing this is quite simple; you can’t fix what you don’t know is broken! It is up to you to go through these reports and make sure that everything on them is accurate! It is shocking how many people have inaccurate negative reports on their credit and are not even aware of them!

Once you obtain your reports, if you find any errors or issues that you want to dispute, contact that credit agency to begin the process. Removing erroneous information can do a lot to increase your credit score!

The next thing you need to do is realize is that using every credit card known to mankind is hurting your credit score! Just because you are given credit this does not mean you need to use all of it! Try consolidating your credit cards. Figure out which ones charge the least amount of interest, keep these active! You should be down to 1 or 2 credit cards that are actually being used. (If need be pay off the balances of the higher interest cards using the lower interest credit card). Once you have accomplished this goal, contact the credit card companies that you want to still use and discuss a lower rate as they will be your only cards they will be willing to work with you.

Scores are calculated using a complex formula. Part of that formula reflects how timely you pay your bills, while another part actually considers how much credit you have available versus how much you are actually using! They want to see that you are not maxing yourself out! This is a very large part of the calculations when determining your credit score!

Additionally, your credit score is determined by how many inquiries you have. If you are applying for credit all over town this will adversely impact your score! Only apply for credit when absolutely necessary! The more people pulling your credit report the lower your score will go!

Follow these tips and you will quickly see your credit score increase and the interest rates you are required to pay decrease! It is worth the time and effort now to gain financial security tomorrow!