7 Ways to Improve Your Credit Score

If you are looking to find out more about how credit scoring works. Or have challenged credit and would like to begin the clean up process this article is a must read.

(PRWEB) October 28, 2004

While credit opportunities are opening up for consumers, poor credit ratings are blocking the doors of opportunity. Lenders are stopped when loan applicants can’t show good credit ratings. It behooves consumers to know the score when it comes to credit rating. Mortgage company decisions, as well as other lending decisions, are very credit score driven. On your credit report are three scores assigned to you buy the three major credit bureaus. Scores range from 350 being poor to 800 being excellent.

While the exact formula they use to reach these scores is their trade secret, I believe the following credit issues have a direct impact on your score.

· At least 3 accounts should be open and paid on time for at least 12 months.

· Never let your balance go over seventy percent of your credit card limit.

· Do not close -0- balance or unused accounts.

· Credit inquiries should be kept to a minimum. If they must be done, they should be done in a short time frame.

· Requesting your social security number be removed from your drivers license; will cut down on unwanted credit pulls as well as protect you from identity theft.

· Past due accounts should be paid as soon as possible. Negotiating a reduction in what you agree to pay them is often possible. After making arrangements to pay them stick to the schedule.

· New debts should not be a priority during this rebuilding period unless you have not obtained your 3 account minimum.

Higher credit scores are built by your accounts being paid on time, over time.

Remember late payments can stay on your credit report for up to six years. If you absolutely must be late contact your creditor with the date the bill will be paid.

This article was written by Walden Mabry, Sr. Mortgage Specialist, Funding Mortgage Ltd. in Tinley Park, IL. He specializes in working with clients with challenged credit and recent bankruptcies.

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