Repair Your Credit With These Tips

1. What can damage your credit score   

What can damage your credit score? This is the question that every person who wants to know about their credit history asks. The truth of the matter is that there is not just one thing that can damage your credit score. Your credit report is constantly being checked, so you need to take great care in examining it and taking measures to improve your credit history.

There are a couple of ways that you can ruin your credit report, but there are also many things that can boost your score. You need to make sure that you pay all of your bills on time. This is a fairly simple thing to do. But many face late and non-payments on time bills are key to keeping your credit in good standing. One way to help you pay your bills on time is to think of ways to lower them so they are more attainable, for example, if your utility bill is high you may want to make a power switch to a more affordable energy rate.

Another way that you can damage your credit report is to charge more money to a credit card than you can pay off each month. This can also have an adverse affect on your credit report. Many people try to figure out how much they can afford to spend each month on a credit card. If they cannot pay the minimum payment or if they end up maxing out their card, they will see their accounts marked as “maxed out”.

Some people make the mistake of thinking that the information on their credit reports will disappear once they file for bankruptcy. This is simply not true. Once your bankruptcy has been filed, your credit report will show that bankruptcy has been filed. This can damage your credit rating for many years to come.

What can damage your credit score? Anything that you do that causes your credit to go bad, such as trying to charge too much money, not paying your bills on time, and intentionally trying to get your credit report pulled because you think the information on it is inaccurate. A good rule of thumb is never to borrow more money than you absolutely need to pay back. The less money you borrow, the better your credit will look over time.

 2. Bill payments   

It is an accepted fact that most people do not pay their bills on time. This, of course, only adds to the overall credit score for the consumer. The more bills paid in a month, the higher the FICO score will be. However, there are many ways to ensure that you pay your bills on time.

One way you can lower your bills and improve your FICO score is to use a bill pay service. Such a service is available for a variety of different accounts such as checking, savings, money market and certificate of deposits (depending on which provider you use). Electronic bill pay is also a feature of cellular, internet and web banking, somewhat like a gas card in its convenience to a consumer, allowing an individual of an online bank to transfer funds from their transactions to another account. You pay a fee each month for the service, and your bill pay service will transfer your outstanding balances to the provider when you make your minimum bill payments. Some providers even charge a small transaction fee for the privilege.

Another way to improve your FICO score is to open a savings or a checking account with a participating financial institution. Banks are required by law to offer their customers a choice of two different types of bank accounts: a checking account and a savings account. By opening a savings account, you can easily manage your funds and pay your bills on time. Automated payments and electronic bill payments may not be accessible if you have a savings account.

There are now also many mobile banking options available. If you have access to a cell phone, you can send and receive electronic bill payments through the phone. These types of payment systems are often referred to as e-wallet, mobilespace or “fresco.” This type of payment system is ideal for seniors that are not able to use credit cards, because they can send and receive electronic bill payments directly to their bank account twenty-four hours a day, seven days a week. With this type of mobile banking service, seniors can avoid late fees and penalties and missed payments. Mobile banking also gives families more access to their money.

The electronic billing service provided by banks has many benefits, but there are also some disadvantages. One disadvantage is that automatic bill payments can result in late fees if payments are not made on time. Most people find that managing their own budget is much easier when they have control over their money. For families with a single breadwinner, automatic bill payments may be a good option, as well as paper checks.

Another important benefit is that you can set up electronic direct deposit with your bank and avoid late fees with bill pay services. Many banks offer a variety of direct deposit options including automatic bill payments, direct deposit online and Internet banking. Depending on your bank, you may also be able to set up an electronic transfer between accounts with the click of a button. For families with elderly or disabled members, having these types of services available can make daily living much easier.

       3. Review credit reports 

If you are wondering how to fix your credit score, it is possible to do so without paying for costly credit repair services. To begin, it is important to review your credit reports from each of the three credit bureaus: Experian, Equifax, and TransUnion. You can receive these reports from each bureau at no cost each year. Each report will show the following information: your name and address, your current address, your payment history, your credit score, and any collections or late payments that you have. Review each report carefully to make sure all information is correct.

Once you have reviewed all three credit bureaus’ reports, you should compare them side by side in order to determine what areas of your report need the most work. In most cases, you will see your payment history as the top item on your report. The reason this is listed first is that payment history is an important part of your credit score. If you have paid all your bills on time and have not opened a new credit card or loan in recent months, you will not have as big of an issue as someone who has neglected both of these items. Therefore, it is important to improve your payment history.

If you find errors on one or more of your credit reports, you need to send a letter to each of three credit reporting agencies requesting that they review credit reports to determine the error. In your letter, include copies of any statements or canceled checks that you may have. If you are unemployed, you may be unable to send proof of income to the lenders who provided the reports. In that case, it is necessary to show the exact forms that were missing so that the lenders can check their records. If they cannot prove that the error occurred, the error will be deleted from your credit report.

After reviewing your credit reports, you should look for errors on your reports that could affect your ability to qualify for a new credit card or loan. Many lenders require individuals to obtain a free credit report before attempting to qualify for a loan or credit card. By obtaining a free credit report, you can see if there are any errors on your report that could prevent you from getting approved for a home, auto or furniture loan. While you are looking at your free credit score and reports, you may also want to apply for a free credit card from one of the many companies that provide them.

If you have been turned down for a loan or credit card because you have an incomplete or inaccurate social security number, you should know that you are not alone. Millions of Americans suffer from the same problem each year and most do not know that they can get a copy of their own personal report to improve their credit score. As you are reviewing credit reports, you will likely learn that an individual who has lived in the same residence for several years has a lofty credit score but that the individual who has moved in with you has a low credit score. Although the credit report will indicate that someone who lives in the house handles payments on the house, the individual who lives there has moved in and probably has an outstanding warrant out for their arrest.

Another reason it is important to review credit reports frequently is to avoid identity theft. This crime is on the rise and it can lead to all kinds of financial problems if the thief gets hold of your information. Many individuals lose thousands of dollars to unscrupulous collections agents each year and must spend hundreds of dollars to get the authorities to freeze their bank accounts or to pursue legal proceedings against the debtors. If you find any accounts in your report that look suspicious, you should immediately contact one of the three government agencies that maintain a database of publicly available personal information.

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