Improve Your Credit Score
Tips on improving, rebuilding, and managing your credit.
Start paying your bills on time.
Sounds pretty obvious but the effect that ONE late bill can cause, even if is a
small bill or debt, can seriously affect your credit history. If you are out of the
debt zone, prepare yourself to start paying all your bills on proper time and form.
Things such as late payments ( 30 days late payments or more) have a severe
negative effect on your credit rating.
Cut down the number of credit cards you own.
It´s easy to get carried away and buy everything through credit cards, and the
lines of credit have stretched so much that is really easy to fall in debt by having
multiple credit cards. Reduce the number of cards you carry and own. Write to
your creditors a request that they close your accounts and report this status
change to all three credit-reporting agencies. This will be a decision that will help
Avoid bankruptcies, liens and collections.
Stay away from bankruptcies, tax liens (a lien for not paying state or federal
income taxes or property taxes) and collections. A bankruptcy will stay on your
credit report for up to 10 years. Collection accounts and paid tax liens will stay on
for seven years, and unpaid tax liens will haunt you forever. This is critical to
avoid future headaches and to repair your damaged credit situation.
Limit the credit to your accounts.
Start requesting (in writing) that your creditors reduce the credit limits on your
accounts. Lower the amount of available credit. The total amount of available
credit is considered by lenders, even if you owe nothing. Having your credit
reduced will keep you away from some serious bad credit and debt situation.