Suggestions for Improving Credit Score Law Office of Matthew A. Dunaway Attorneys Birmingham Alabama

Suggestions for Improving Credit Score

Posted by: Matthew Dunaway
March 10, 2008
Topic: Credit Reports

Although it is not easy to increase your credit score, and it will take some time, it can be done. The following steps will help you to attain that magic score.

Pay all your bills on time

A good credit report results from a sound payment history. If you continue making your payments on time for a long period, it further helps to establish your creditworthiness. In fact, this is not merely restricted to paying your mortgage, car loans or credit card. It extends to your cell phone bills, utility bills and rent as well.

Pay your credit cards on time

Pay your credit card on time each month. Surprisingly, paying off your revolving accounts dramatically affects your credit score. In fact, it is best if the total balance of each credit card remains below 25% of the total available credit limit.

Avoid bounce checks

You might think how can a bounce check affect me? However, bounced checks do affect your financial history and quite adversely! Even though the overdraft might not come up on the credit report, there are some finance companies and banks that have their own system of tracking people with bad a history of bounced checks. Also, if a bounced check remains unpaid, the balance may be collected and reported by a debt collector.

Check your credit limit

Check if your credit card issuer is accurately reporting your credit limits. If they are not, call up your credit card issuer and request them to accurately report the current credit limit.

Rehab Student Loans

If you have a student loan and missed a payment or have defaulted, you can try entering a 'rehab' program.

Check your credit report once a year

Many people don't like looking at their credit report because it takes time and can be depressing if there are a number of delinquent accounts. A person with a bad credit record may not want to review his credit report, but it is necessary to check it once a year. Quit often there are numerous mistakes on your credit report. More so, you might even detect some fraudulent activity. If you notice any such errors, you should dispute them immediately.

Avoid Judgments

If the judgment is entered against you, it will appear on your credit and adversely effect your credit rating. If you are sued for a debt, it is important to contact an attorney who can help you defend the lawsuit.

Collection agency

You can try asking a collection agency to eliminate a debt from your report, in case you pay off the debt. However, make sure you get everything (the agreement) in writing. Send a payment only after the terms of agreement are met.

Work to increase income and pay off debt

Although this sounds simplistic, often, the best way to increase your credit score is to pay down debt and make sure you pay all your bills on time.

If you have questions about your credit report, please feel free to contact me.