Raise Credit Report – How To Improve Your Credit Rating
If you are suffering from a poor credit rating, it would be worthwhile for you to analyze your credit reports. The information on your credit reports are used in calculating your credit score, the three-digit number ranging from 300 to 850 which lending institutions use to judge your credit worthiness.
Your payment history accounts for around 35% of your credit score. Negative reports related to payment history range from minor delinquencies to more serious negative items such as charge offs, collections, and repossessions. The longer the delay in payment, the more point deductions you have on your credit score. To raise your credit rating, you need to avoid late payments on all of your bills. Find a system that can effectively remind you of your bill due dates. Use the calendar programs in your personal digital assistants or mobile phones. Access the online payment features offered by your bank or creditors. You also need to ensure that all of your bills are accounted for in your budget so you would have the necessary funds available on or before your bill due dates.
Your creditors and debt collectors are the ones providing reports on your credit activities to the three credit bureaus: Equifax, Experian, and TransUnion. As in all human activities, mistakes can and may happen. Some common errors on credit reports include false delinquencies and stray accounts that actually belong to another person. There have also been cases of duplicate accounts. If you discover any inaccuracies, you need to write a dispute letter to each of the three credit bureaus. The credit bureaus, creditors and debt collectors are the ones accountable for ensuring the accuracy of your credit reports under the Fair Credit Reporting Act. Cleaning up your credit reports from possible errors would allow you to regain the credit score points that rightfully belong to you.
Another major contributory to your credit score is the ratio of your total debts to your total credit limits. The higher your debts are a compared to your credit limits, the lower your credit score. You can raise your credit rating by paying off some of your balances so this credit utilization drops to a more respectable level. The ideal debt level is only around a third of your total credit limits.
