by L L

Created on: April 06, 2010   Last Updated: April 11, 2010

Most people believe that the credit score they are given is the score they are going to have to deal with for seven years.  People do not realize that there may be something on their credit report they can fix to raise their score.  The most important thing to do when trying to repair your credit is to really understand what your credit score is.  The most popular score used in the United States is the Fico Score which is the creditworthiness of a person according to Fair Issac Company.  In this article I will tell you easy steps you can take to improve your credit score.

1) Stop using your credit card- If you are in a bad situation financially one of the worst things you can do is to get yourself into more debt.  Stop charging and start paying off your debts.
2) Get a free copy of your credit report.  There is no need to pay for a copy of your credit report because you are given three free reports a year.  Go to www.annualcreditreport.com , try to space out getting the three reports so you can check your credit report three times a year.
3) Make sure your credit report is accurate- Once you receive you credit report go through it carefully to make sure all the information on the report belongs to you.  Negative marks could be on your report hurting your score and they possible could not be yours.
4) Make sure all accounts are current- If owe anything on any of your account pay them so they are current.  Having delinquent accounts on your credit report will lower your credit score greatly.
5) Do not close old accounts- The length of your credit history effects your score. Keeping old accounts open will give length to your credit history, just make sure you are not using them!
6) Do not apply for a lot of credit at one time- Every time someone runs your credit report in order to see if you're worthy of credit you get a hard inquiry on your report.  Having more than one or two inquires can damage your score.
7) Keep paying bills on time- The most important thing affecting your credit score is payment history.  Late payments stay on your report for 7 years but will have less of an effect as time passes.
8) Do not max out your credit cards- The more credit you have available that you are not using the better.  Debt to credit ratio makes up 30 % of your credit score.
Improving your credit can be a long journey but believe me be patient because it is worth it.  Having a better credit score will give you better rates when you buy a home or a car.  If you research all you can about credit and work on raising your score you will do it!  I hope the above tips help you on your way to financial freedom! Good Luck!

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