Usage of credit cards ultimately affects your
credit score. If you end up high in credit card debt and are unable to
make payments, this will hurt your credit score. So, how can you
improve on your credit score and repair your credit? Before we get into
that, lets first find out how credit score is calculated, reported and
ultimately how to improve on it.
In its simplest definition, a credit score is a
numerical index which represents a person's financial
credit-worthiness. Banks and credit card issuing companies use your
credit score to determine the level of credit limit & interest
rates they will set on you. In the United States, the commonly known
credit score is the FICO score and is calculated
using mathematical formula developed by the Fair Isaac
Corporation.
The relationship that you've had with previous
lenders and businesses will reflect in your report and can heavily
influence many financial decisions. What then needs to be done to if
you have a low/bad credit score. Below are useful tips to follow
- Request for your credit report from the top credit
bureaus ie Equifax, TransUnion and Experian. Each might give a
different report on you
- Take your time to review the report. Don't be
suprised to come across errors in your report. The bureaus usually
recieve your report from your creditors but do not verify the
information given. Be meticilous and search for any information which
might be incorrect. If you find information that is not correct you can
write a letter or fill out the dispute form which comes with the
report. To view a sample letter that you might use click
here (a window pop ups)
- Pay your bills on time! Any payments which are done
thirty days late will affect your credit score.
- DO NOT declare that you are
bankrupt. If you do it will affect your credit score for more than 10
years!
- Maintain three to five lines of credit, since your
score will be lower if you don't have any credit.
- Try to stay within 10 to 30 percent of the maximum
on each credit line. Do not go over 50 percent on any credit line. I
know this contradicts what many credit issuers will tell you when
trying to you to sign up to transfer your balances. The effect is that
it will lead to a higher score than trying to consolidate everything
into one credit line and maxing out.
- DO NOT allow a situation where
too many inquiries are made on your score eg before you apply for a
loan. For example, if you apply for new credit and the creditor checks
the credit report, a temporary dip occurs in your score.
- Become an authorized signatory
on one or more of one's parents' credit cards that they carry a balance
on. Since you are an authorized signatory, your credit score will
improve IF the parents pay responsibly. This is very useful for young
adults with little or no established credit.
Credit Report Repair Agencies
There are many companies which will offer to repair
and make your credit clean. Most of these companies are not completely
honest in their dealings and the activities that they engage in may may
cause you to violate serious laws. After reviewing most of the the
credit report repair agencies, Lexington Law
company came out on tops in this field. Our reasons are:-
- Its Refund Policy:- This is its
strongest selling point. The company promises that if they don't
deliver in repairing your credit report, they will willingly refund
some or all of your money back if enough disputed items are not
deleted. When you visit the site please check out their warranty page
to see a practical example of how their refund policy works
- You are assigned a real lawyer who understands the
Lexington Law to deal with your case one on one.
- You are free to cancel their services any time you
wish and are not bound by long term contracts
- Some of the items they delete include, late
payments, judgements, repossessions, foreclosures among others.
- In accordance with US regulations, Lexington will
charge you retroactively for the service it
provides. This means that you will be charged each month for work
performed on the previous month. They charge an
initial fee of $79.00 that covers the most expensive portion of your
retainer: your case setup. Please review the fees involved carefully at
their visit. Visit them here
-
|
CREDIT CARD TYPES
Charge
Cards
Poor
Credit
Prepaid
Best
College Student Cards
Instant Approval
Secured
Cards
Unsecured
Balance Transfer
Cards
Zero Interest Cards
Gas
Cards
ISSUERS
American Express
Chase
Manhattan
Capital
One
Egg
Credit Cards
Marbles (UK)
ARTICLES
Eliminating
Card Debt Tips
Credit
Card Calculator
Improve or Repair Your Credit
Score
Credit Card
Processing
Credit
Card Fraud
More
Articles
Credit
News Articles - New
|
IMPROVE YOUR CREDIT SCORE