Improve Your Credit
Here are six basic things that an individual can do to help improve their credit.
Fix your Credit reports to make them 100% accurate
Current statistics tell us that 7 out of 10 credit reports contain
errors, so this step is critical. You can either dispute the
questionable items on your credit reports yourself, or you can have a
reputable firm, such as Lexington Law, do it for you. Do not expect
credit bureaus to help you voluntarily. Credit bureaus are for-profit
companies, and it costs money to update records. You must be proactive.
Regulate your open accounts
Consider closing unused accounts, high interest accounts, annual fee
accounts, etc. Try to have about 6 credit accounts open, all in healthy
standing, with a lengthy history if possible.
Don't recklessly apply for new credit
Multiple inquiries over a short period of time may make it seem like
you're opening numerous credit accounts because something is going wrong
financially, or that you have more debt than you can realistically
overcome.
Pay on Time
Pay all your bills on time each month. Negative items, such as late
payments, collections, and bankruptcies have the greatest negative
effect on your credit score. Lenders need to know that they can count on
receiving timely payments from you.
Don't overextend your credit limits
If your credit cards are pushing their limits, then this can be a red
flag for lenders. Try to keep your credit card account balances below
35% of your available credit limit. This may keep you from looking
overextended.
Time fixes everything
This may not always be true with credit, but it does apply. When you
establish a long history of using credit responsibly you demonstrate a
certain quality of character. You might want to keep the oldest account
on your credit report open in order to show an extended period of credit
use.