Your credit score is the most important piece of information on your credit report.
It sums up the whole report for lenders and they use it to determine what interest rate you will receive when borrowing money.
This is the main reason you want it to be as high as possible.
In this article I will discuss some quick ways you can use to boost that important number on your credit report.
First of all keep in mind that you have three credit reports, one with each of the main bureaus which means that you have three different credit scores to be concerned about.
One with Equifax, Transunion and Experian.
The secret to boosting your credit scores has to do with understanding the factors that go into calculating your scores, which are as follows.
Debt Ratio- The purpose of your credit score is to figure out how much of a risk you will be when it comes to repaying a loan.
So a lower score means you are a higher risk and more likely not to pay the loan back as agreed, while a higher score means you are more likely to pay according to the terms.
If you have current credit card accounts that are near the spending limit it means that you are over extending yourself which is translated by the credit scoring system as a high risk and your credit score is lowered because of it.
So lowering your total balance on credit cards will contribute to increase your credit scores.
Deleting Recent Collection Accounts- The most recent negative accounts on your credit report also hurt your credit score.
In order to raise your score you want to try "challenging" collection accounts with the credit bureaus to have them deleted.
Some collection accounts are not properly verified with the creditor which means they need to be deleted from your credit report.
Another option in dealing with collection accounts is to try and settle them with the collection company in exchange for a deletion of the item from your credit report.
It sums up the whole report for lenders and they use it to determine what interest rate you will receive when borrowing money.
This is the main reason you want it to be as high as possible.
In this article I will discuss some quick ways you can use to boost that important number on your credit report.
First of all keep in mind that you have three credit reports, one with each of the main bureaus which means that you have three different credit scores to be concerned about.
One with Equifax, Transunion and Experian.
The secret to boosting your credit scores has to do with understanding the factors that go into calculating your scores, which are as follows.
Debt Ratio- The purpose of your credit score is to figure out how much of a risk you will be when it comes to repaying a loan.
So a lower score means you are a higher risk and more likely not to pay the loan back as agreed, while a higher score means you are more likely to pay according to the terms.
If you have current credit card accounts that are near the spending limit it means that you are over extending yourself which is translated by the credit scoring system as a high risk and your credit score is lowered because of it.
So lowering your total balance on credit cards will contribute to increase your credit scores.
Deleting Recent Collection Accounts- The most recent negative accounts on your credit report also hurt your credit score.
In order to raise your score you want to try "challenging" collection accounts with the credit bureaus to have them deleted.
Some collection accounts are not properly verified with the creditor which means they need to be deleted from your credit report.
Another option in dealing with collection accounts is to try and settle them with the collection company in exchange for a deletion of the item from your credit report.