How To Improve Your Credit Score Essay

Once you have your credit report and your credit score, you will be able to tell where you stand and where many of your problems lie. If you have a poor score, try to see in your credit report what could be causing the problem: -Do you have too much debt?
-Too many unpaid bills?
-Have you recently faced a major financial upset, such as a bankruptcy?
-Have you not had credit long enough to establish good credit?
-Have you defaulted on a loan, failed to pay taxes, or recently been reported to a collection agency? The issues that contribute to your credit problems should dictate how you decide to boost your credit score. As you read through this book, highlight or jot down those tips that apply to you and, from them, develop a checklist
2) Your current debts (accounts for approximately 30% of your credit score) deal If you have a lot of current debt, it may indicate that you are stretching yourself financially thin and will have trouble paying back debts in the fu- ture. If you owe a lot of money right now - and especially if you have bor- rowed a great deal recently - will bring down your credit score. You can boost your credit score by paying down your debts as far, and as fast, as you can. (usually below 35% of your credit limit) 3) Length of credit history (accounts for up to 15% of your credit score) If you have not had credit accounts for very long, you may not have enoughof a history to tell lenders whether you make a good credit risk. You can counter this by keeping your accounts open rather than closing them as you pay them off. 4) Type of credit (accounts for approximately 10% of your credit score) Lenders like to see a mix of financial responsibilities that you handle well. Having bills revolving accounts, as well as, one or two types of installment loans can actu- ally improve your credit