Dispute Your Credit Score
Raise Your Credit Score
Your credit is extremely important when trying to assure lenders that you're a good credit risk. Take these steps to build the best credit record you can - before you need it.
1. Pay your Bills on Time
35% of your credit score is determined by your record of paying on time. In order to maximize your credit score in this area, try to avoid any late payments over 30 days.
2. Pay Down your Account Balances
30% of your credit score is determined by your available credit limits and how much your balances are. In order to maximize your credit score in this area, try to keep you credit balances at or less than 25%-30% of what your account limits are. For example: If you have a credit card limit of $1,000 try to keep your balance at or around $250 - $300.
3. If you do not currently have credit accounts, get one
15% of your credit score is determined by the length of your credit history. The more depth and longevity of your credit accounts coupled with Steps 1 and 2 will help you increase your credit score.
4. Limit the number of applications for credit accounts
10% of your credit score is based off of the number of times you are applying for credit. The more times you've applied for credit cards or loans, the more credit report inquiries will show up on your credit report. A higher number of credit report inquiries may indicate that you're struggling financially or may have a lot of debt (even if you never used the cards or gotten the loans). All inquiries must remain for a minimum of 1 year from the date the inquiry was made. Most inquiries will stay on your credit for 2 years. However, employment or pre-approval credit offers will show only to you and not other creditors.
5. Have a good balance on types of credit accounts
10% of your credit score is based off the types of accounts you have on your credit. Your Credit score will reflect your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. A balance shows that you are able and committed to pay all different types of accounts.
6. Monitor your credit report and dispute incorrect information
The fair credit reporting act gives consumers the right to one free credit report per year. These inquiries will not show up on your credit report nor will they affect your credit scores. Many people may have incorrect or inaccurate information reporting on their credit that can adversely affect their credit score. Consumers have the right to dispute these errors and have them either reported correctly or removed all together. It is important to monitor all three credit bureaus because information contained in one may not coincide with information contained in another. Any time you dispute inaccurate information make sure you keep a copy for your records.
