4 Sure Steps to Increase Your Credit Score
In this article, I will explain clearly four sure steps you can take to increase your credit score. Your credit score is a very important factor the creditors and financial institutions will consider when you apply for loan or credit. However, if you have a low score these four steps are important in putting you on track.
Get Your credit report
This is what you need to do first to increase your credit score. When you get your credit report, look out for any incorrect information on it. Wrongly spelt names, entry of settled debts that still shows as unsettled are examples of information you will want deleted from your report.
Dispute any incorrect information
Write letters to the credit bureaus notifying them that the error entered in your report is not yours. Remind them that you have the right to tell them to remove any error from your report. Do this better by sending them a standard first class mail. Under the Fair and Accurate Credit Transactions Act, the credit bureaus are required to investigate any negative entry in your report within 30 days. If, however, they are not able to verify the correctness of such negative information then they must delete such entry according to the law.
Pay your bills
Be sure you pay your before they are due. Early payments attract positive information on your credit report. Late payments will lower your score and this is not what you want. Besides the fact that early payments increase your credit score, lenders and creditors will be confident that you have good debt payment habits and this will increase your chance of getting a loan when you apply for one.
Get a credit card
Apply for a secured credit card and deposit funds equal to the limit you have on it with the issuer of the card. The safe rule here is never use more than 30 percent of what you have on your credit card. Over time as you make your payments, they will be reported to the bureaus and this will have a positive impact on your scores and overall credit rating.
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