Introduction
Your credit rates will impact a lot of different areas of your life. By having a good FICO score you will be able to get better loan rates. You will also be able to have a better chance of renting an apartment or getting a better job. If you have had problems with any of these things in the past, there are a lot of ways in which you can improve your FICO score. All you need to improve your credit rates is an Internet connection and some time on your hands.
Step 1
The first thing you need to do is order copies of your credit report from each of the three major credit bureaus. These are Experian, Equifax, and TransUnion. You can order your credit report for free directly from these companies. There are also numerous web sites that offer to send you them as well. You need to make sure that these web sites are legitimate if you decide to deal with them though. Therefore, it may be better to deal with the companies themselves directly.
Once you get your credit reports you need to sit down and look over them closely. There are a lot of people whose credit rates are poor due to there being errors on their credit reports. While major mistakes will definitely pop out at you, even the small mistakes can mess up your credit rates. This is why it is vital to make sure that all of your credit limits are listed correctly.
If there are any credit cards that are dragging down your credit rates but you are typically a good customer, try to negotiate with these creditors. Some creditors are willing to erase one late payment. This will help raise your credit rates.
Step 2
Pay all of your bills on time even if you can only make the minimum payment. A late payment can really damage your credit rates. Just one payment that is 30 days late will drop your score. Any payment that is over 60 days late will hurt your ability to get new credit or loans.
Step 3
Never close any of your credit accounts. The percentage of your credit that is currently being used plays a major factor in determining your credit rates. So, if you have an outstanding balance and close the credit card you will increase your credit to debt ratio. Whenever this is more than 50 percent your FICO score will lower.
Step 4
Don't open any new credit lines. Having inquiries listed on your credit report decreases your credit score. Try only to make such inquiries once a year.
Step 5
If you feel as though there is too much for you to handle, contact a credit counseling service. It is important to make sure that they are legitimate though. Regardless of how you go about fixing your credit rates though, you should always focus on paying down your debt as fast as possible.
Tips
You are entitled to 3 free credit reports each year. It is a good idea to stagger when you get them so that you will be able to watch your credit closer.
