Improve Your Credit Score Scale
To improve your credit score scale, you must first understand that you
have three unique credit scores.
Your credit score ratings can be applied to a scale to see if you are considered to have good credit or bad credit. What many people fail to realize is that there is no magic formula to understand how to understand how you are rated on the credit score scale.
If you do not have three credit scores that were generated from each of the three credit bureaus, there is no way you can understand your current credit score ratings.
Once you have obtained all three credit scores, you can then begin to understand how to improve your credit score scale ratings. This may seem obvious, but you need to read all of the information held by all three credit bureaus. When you request your credit scores, you should make sure to obtain credit reports from all three credit agencies. Carefully read every single bit of information contained within each of these three credit agencies.
Make sure that every piece of information contained within each credit bureau is accurate and current. If you find any mistakes, simply follow the instructions in that report on how to correct the information with the bureau showing the inaccuracy. This process takes about 30 days from when you file your complaint until you see your report with the updated accurate information. Depending on the types of mistakes you find, they may or may not have been affecting your credit score ratings. To improve your credit score scale, you will find that not all mistakes on a credit report actually affect your credit score rating. This is not to say that having accurate information is not necessary because it does not affect your actual credit score, I am just telling you that not all information is reflected in your scores.
Once you have all of your credit report showing accurate information, you can then look for items marked as derogatory in the report you just received. If any of these accounts are showing that you are currently paying late, you must start to pay them on time in order to improve your credit score scale. Having accounts showing as currently delinquent, will seriously impair your ability to raise your credit scores. This may mean that you need to pay an open collection accounts or you may need to negotiate a settlement on something that is showing up as currently delinquent or derogatory. Your scores will start to improve as soon as any account showing a derogatory a derogatory remark is closed or no longer active (meaning you are no longer in a delinquent status).
Believe it or not you can improve your credit score scale ratings without removing old derogatory accounts. When you contact a credit repair agency, the first thing they want to do is remove old derogatory accounts. As someone experience in credit repair and loan approvals, I can tell you your time will be better spent doing other things at this time. Once an account has gone from actively delinquent to a closed account or now paying current account, it will stop hurting your scores further as you have established a bottom. Now that you are at the bottom, your objective is to start to move your scores up.
Look at your current credit reports and see if you have any open credit cards or revolving lines of credit. Check to see the balances they are reporting as compared to the credit limits for each of those accounts. If your current balances are close to the credit limits, you can raise your credit scores quickly now that you have hit the bottom. This may be tough to achieve as it could cost you a lot of money, but it is not a waste of money as what I'm going to tell you is to pay down your current debts.
In order to have the highest credit scores, your use of credit on your revolving lines of credit (and this includes your credit cards), needs to be below 10% of your credit limit on each account. This is generally where most people do not understand that having high balances adversely affects their credit scores. This one action can raise your credit scores by over 50 points and I would say that is a very effective to improve your credit score scale ratings. This can be achieved even with your past due accounts on your credit reports. I do not care if you currently have a bankruptcy on your credit reports, this will improve your credit scores.
Your credit score ratings will naturally start to increase once you have established a bottom as I have explained above. Even if you did nothing except pay all of your accounts on time after you have established a bottom, your scores will resume to their previous level in about 2 to 3 years.
If you would like to speed up the process of improving your credit score rating, then follow the instructions I have given you above. This starts with reviewing your credit reports and seeing where all three of your credit scores are currently at before you can effectively raise your scores and improve your credit reports in general. After doing what I have recommended above, if you have not seen a significant rise in your credit scores after 3 to 4 months, you can then consider employing a credit repair company.
Credit repair is effective, but the methods I have explained above cannot hurt you, will help you reduce your debt, and will improve how you look when someone reviews your credit profile.