3 Ways to Boost Your Credit Rating

Check Credit ScoreYour credit health is extremely important in todays world, from making purchases to getting a new apartment, or even getting that new dream job you have always wanted. Without good credit you will fail to live a more quality life.

So what is good credit and how do you achieve it? That’s a bit more difficult to explain. Good credit can be a score of 690 or above, or it could simply be a score of 650 that gets you approved for that new apartment. But it could also be 720, which might be needed for that dream job. There are many variables that need to be considered here.

Before we explain how to achieve good credit, be sure to pull your credit report, for free, at www.AnnualCreditReport.com, which is a free service (by law) that allows you to view your credit from all 3 Credit Reporting Agencies (credit bureaus), which are Experian, TransUnion and Equifax.

Once you’ve pulled your credit you will need to take a good look at what’s going on. Is your personal information correct? This is extremely important as it can cause many issues, and if incorrect could also be a sign of fraudulent activity.

Reading over your credit report to ensure that your information is correct is just the start. Next you need to check for any other erroneous information, such as accounts that may not belong to you or maybe even accounts that are listed incorrectly. When you’ve gone over this information and highlighted inaccuracies, then you will need to start looking over the accounts listed on the report.

Now, with your credit report on hand you can follow this list.

  1. Be sure that all of the information is listed correctly.
  2. Check the accounts to ensure that they belong to you. If they do not, then you will need to dispute them. I highly encourage you to write a HAND written letter as it will help you get past the electronic scan checking that the CRA’s (credit reporting agencies) do to eliminate copy and pasted letters from the internet.
  3. Dispute all inaccuracies or anything that may not belong to you (erroneously reported items).

Doing this will help improve your credit rating if you have problems such as those mentioned above. If not, no worries, we will go over other ways to help you out.

Next, after you’ve disputed the inaccuracies or accounts that do not belong to you, it’s time to move on. Applying for new accounts will help boost your credit score. This can be secured or unsecured accounts.

If your credit rating is higher than 680, then you can attempt to apply for unsecure cards such as the Discover Card. However, if it’s below that score you will need to stick with a Secure Credit Card.

With an secure credit card you will be able to pay up front and borrow against that money. This allows you to quickly boost your credit rating within a matter of months. However, there are some things to beware of.

  1. Keep your credit utilization below 30% of the max. This helps you to keep your credit score up and shows you are worthy of other (unsecure) credit cards.
  2. Make your payments on-time, each and every month. This shows good payment history and account status.

By doing the above you will be able to boost your credit score and improve your chances of getting new credit accounts in the not-so-distant future.

To learn more about Credit Repair, please read our other articles and tips at: http://www.creditbrite.com