Secrets to Raising Your Credit Score

If someone has bad credit and wishes to repair his credit report, the first thing he should do is pay some credit cards down a bit. Doing this shows creditors and lenders that he can be responsible with his accounts, encouraging them to take a chance on him so he can repair his credit score. If he can get his balances below 30% of his limit, that’s good; if he can get them 10% below, that’s better. Do you want to Raise your FICO score?

Lexington Law Firm is here to share some information about credit repair services, such as:

- Pay Down Credit Cards
- Use Charge Cards Gently
- Obtain an Installment Loan
- Dispute Incorrect Credit Report Items

Reduce Credit Card Balances

Lightly Handle Charge Cards

Be careful, when trying to repair a bad credit history, to avoid holding large balances on the credit cards one has. The information that the credit reporting bureaus receive and base a credit score on are the balances on one’s last statements. If it’s difficult to keep track of what percentage of one’s credit limit is being used, it can be arranged with the card companies to send email alerts when he is getting close to his pre-set amount. If he habitually uses more than 50% of his credit card limit, he might want to share the wealth; that is, use other cards to help keep his percentages at 30% or lower.

Get an Installment Loan

This is one method to Repair Your Credit is an installment loan is considered the opposite of revolving credit (credit cards), and shows financers that a person can be conscientious with his credit – both types. Installment loans include personal, mortgage, and auto loans, as well as student loans, and can be paid over time. If someone does not already have such a loan on his credit reports, he should apply for a small personal loan from a local bank or credit union.

Dispute Big Mistakes on Credit Reports

Sometimes creditors mistakenly attach incorrect items to a person’s credit reports. When he discovers these errors, he must immediately write letters of dispute for each item and mail them by registered mail to the reporting bureaus. This is a major step to repair bad credit. The bureaus have 60 days after receipt of the letters to render a decision; up to 20% of negative items are removed from credit reports this way, improving a credit score.