Tips for improving your credit score

Understand how your credit score is determined

Many factors influence your credit score. The most important factor that determines your credit score is if you pay your bills on time. If you pay late or have had something go to collection, the history will show up in your credit report. Other factors that have an impact on your score are: What is your outstanding debt? How long is your credit history? Have you applied for new credit recently? How many and what types of credit accounts do you have. CLICK HERE for a FREE publication on credit scoring from the Federal Trade Commission.

Pay your bills on time

If you are having trouble paying your bills on time, consider an online payment service. Most banks, I use Citibank and find it works out great, have online checking and online bill payment services. Once established, you can arrange to have your bank make your payments for you. You can even schedule to have a payment made at a point in the future which allows you to keep your money in the bank until that time but keeps you from forgetting to make your payment. You can also see your current balance to avoid costly overdraft fees when making payments.

Get a copy of your credit report to make sure the information is correct

Under federal law, you can get a free report from each of the 3 national credit reporting companies every 12 months. CLICK HERE for a free copy of your credit report. You can also call, 877-322-8228. This will not affect your credit score. Once you receive your credit report, make sure that all of your credit is accurate. If something is there that shouldn’t be, contact the creditor directly or you may also contact the credit reporting agency. Consider closing out credit cards that are no longer used.  CLICK HERE for a FREE report from the Federal Trade Commission on How to dispute credit report errors.