How To Improve Credit Score

Improving your credit score can seem like a daunting task. The credit bureaus claim to factor in hundreds of things and you have no direct control over your score.

Well they are wrong. No matter how bad your credit score is you can take a couple easy steps and improve it.

1. Dispute and remove negative items on your credit report. This can be done yourself or you can hire a service to do it on your behalf.

2. If an item is verified then work out a way to pay them in exchange have the item removed from your your credit report.

3. Pay your bills on time. It is alleged that missing one monthly payment can cause your score to drop by up to 50 points.

4. Open a new line of credit. Your score will receive the most benefit if you have a revolving line of credit. We suggest an unsecured credit card.

This will also help you build a positive payment history by paying your monthly bill. However if you can not qualify for an unsecured credit card then open a secured card, but make sure it reports to all 3 bureaus.

Your score will get a bump if you can keep your balance at approximately 10% of your credit limit. This shows that you do use your credit and that you use it responsibly.

5. Pay off large debt. Your score will get a bump if you have high available credit to debt. The bureaus want to make sure you are not overextended and by showing them you have available credit your score will get a bump.

These are the five factors you should focus your efforts on. There is however one last factor that is surrounded by controversy.

6. Piggyback credit, this is when you are added as an authorized user to a good credit card account. The benefit is this account is now reported on your credit report.

This tactic has been widely abused and the scoring model has adjusted its formula to discount authorized users. However there is a debate over if this change has occurred yet or not.

In sum by doing step one through five you will improve your score dramatically. With an improved credit score you will finally be able to have the quality of life you truly deserve.

For All of your INCORPORATING needs contact Samuel Wierdlow Inc. (www.SamuelWierdlowInc.info)