Fix Your Credit Report

Having good credit is essential for getting loans, credit cards and reasonably priced insurance policies. When you are considered a high risk, often creditors will activate and account or a loan for you, but the interest rates will match that risk. But there are some things you can do to get a higher credit score and reduce your risk factor.

High Credit Score Tips

You’d be surprised what the power of asking in writing can do for you. Ask creditors to quickly remove their record from your credit report once it has been paid in full. Write to dispute any inaccuracies on your credit report. Send this letter to both the originating company and the credit bureau.

Pay With Care

Pay creditors off completely and ask for receipts so you can prove that they have been paid in full. Make timely payments, too. Every time you are one month, two months or three months late with your payments, it negatively affects your credit score. Call your creditors right away if you are having trouble making ends meet and will be unable to make a payment on time. Most often companies will work out a scheduled payment plan for you to stay on track and not get too far behind. Pay extra on your credit cards above the minimum payment due if you can.

When To Consolidate Credit

It may be a good idea to consolidate some of your debt into a more manageable payment. However, beware of closing accounts with unpaid balances. These types of accounts will negatively affect your credit score as well. Refrain from starting new credit accounts. Zero balances, on the other hand, will help your score go up. Keep your debt down and you will be able to better manage it.