Introduction
With this downward economy, it is no surprise that millions have poor credit scores. Thankfully, these hints will give you some valuable insight into how to raise credit score to build better credit ratings.
Step 1
Talk to creditors to try using alternate payment plans directly if you cannot make monthly payments. Many times, creditors can create repayment plans that aren't reported to the credit bureaus, but only if you contact them. As an added benefit, this may alleviate some financial strain allowing you to raise credit score and focus on accounts where an alternate repayment plan is not available.
If you go with a repair company to raise credit score, be sure it is legitimate. Just like any other field, credit repair has plenty of companies that do not provide what they promise. Many people have fallen for scams involving credit repair. Always read reviews online first to find a good agency.
Step 2
One easy credit repair tip which help to raise credit score is to maintain an active checking and savings account. Open accounts serve as a proof of income and financial stability to potential lenders. If managed properly, your accounts will show evidence of reliability and responsibility, which will help your situation with creditors.
Go over your monthly credit card statements to check for mistakes. You don't want them reporting these to the credit reporting companies, so you'll need to contact them immediately if there are. This will somehow help you to raise credit score if you fix this issue.
Step 3
It is illegal for debt collectors or companies to threaten you. If this happens, be sure to document it. Laws such as the FDCPA exist to stop debt collectors from harassing debtors.
One of your main tasks to raise credit score is paying off your cards as fast as you can. First, work on the accounts with the highest interest rates and the highest balances. This will show creditors that you are responsible with the cards.
Step 4
Making monthly credit payments in a timely manner is one of the best ways to build your credit score. Send in a payment even if you can only afford the minimum. One missed payment can mean the difference between good and bad credit.
Collection agencies are stressful to deal with. You have the option of sending a cease and desist letter to agencies to stop them from calling, but that doesn't mean that your debt vanishes. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
Step 5
Your credit cards are not doing you any favors; avoid using them. Do all of your spending with cash or debit cards to raise credit score. If you ever use a credit card, be sure to pay it all in full.
Joining a credit union may be a way to to raise credit score when you are having a hard time getting credit. Credit unions often offer better interest and more options than chain banks do.
Tips
Now you know how to to raise credit score, so get started on a plan of action. Don't let poor credit affect your life any longer. Use the tips presented here to repair your score and your overall financial health.
