Credit score is one of the most important economical items in USA and countries with similar systems. Credit score mainly tells about “creditworthiness” of a person. Credit score is preparing and releasing by credit bureaus. Banks and other companies use this information while giving debt and indicate potential risk for bad debt. Interest rate and credit limits are indicating by credit score. Lenders learn most revenue customers with this system. Identity scoring is the main point of “credit trusted system.” In 70s, only banks were giving credit scoring but today it’s possible to take credit score from landlords, insurance companies and mobile phone companies. Improving credit score is vital for a good economic condition. How many ways are there to improve credit score?
As a matter of fact, half of the problematic credit scores are causing by accounts hurting the score. First of all take a detailed copy of your credit report and find the hurting ones. Another mistake that people are mostly making is taking credit card report from only one bureau. It was hard and expensive to take credit card reports from bureaus in 90s but today it’s cheap and possible to take from three major bureaus. Also today there are some websites offering credit score free but their data may be old or corrupt.
Controlling your credit score detailed will also give a chance to find errors. It’s a general problem that late credit payments reduce the score. Reducing point is generally 60 but sometimes it can reach to 110. But mainly problems on late credit payment causes from forgetting the payment date. Also it’s possible to see that score is reducing even if it’s paid one or two days later than last moment. Writing to credit score bureaus are a good way to increase your wrong score. Bureaus always take into attention these mails and they mostly fix the problem.
Stopping to take more credit cards than your need is very important to keep credit score in the balance. A new credit card means new risk and new wave on score. Also if your balance gets higher, your risk will be higher. If it’s possible, instead of paying little things from credit card, pay those cash so you will decrease your balance and improve credit score.
A clear payment history means %35 of your credit score is in secure. When you go more and more far than your payments, it will hurt your credit score more and more. If you have money, you may pay credit debt before its last date. It will help you to improve credit score and balance some early history problems. There are lots of collection agencies working for this problem so you can use one of them. Also you can talk to credit card issuer. Credit card issuers mostly re-age payments. When you re-age, your credit history will show as you always paid on time.
It’s a common belief that closing a credit card improved credit score but it’s wrong. Economists say that it’s very rare that when a person closes credit card, it improves credit balance. So letting balances in limit instead of closing is more advantageous than closing it.
People never want to speak with credit card issuers. Problem is continuing between people and credit card issuers since 90s. But today things are changed and credit card issuers opened new departments to help people for credit scores. It’s true that all credit card issuers are offering hardship programs but it’s maybe a must for you. Also finishing the debt as possible as is important because it’s 30% of credit score.