Best easiest ways to repair your credit

There are very simple solutions to repair your credit score. A credit score is not like a race car, where you can rev the engine and almost instantly feel the result. Credit scores are more like your driving record: They take into account years of past behavior, not just your present actions.

Check your credit card balance

One major factor in your credit score is how much revolving credit you have versus how much you are actually using. The smaller that percentage is, the better it is for your credit rating. Always pay down your balances, and keep those balances low. Even if you pay balances in full every month, you still could have a higher utilization ratio than you would expect. That is because some issuers use the balance on your statement as the one reported to the bureau. Even if you’re paying balances in full every month, your credit score will still weigh your monthly balances.

Never leave old debt

Some people erroneously believe that old debt on their credit report is bad. The minute they get their home or car paid off, they are on the phone trying to get it removed from their credit report. Negative items are bad for your credit score, and most of them will disappear from your report after seven years. However, arguing to get old accounts off your credit report just because they’re paid is a bad idea. Remember that, good debt that you have handled well and paid as agreed – is good for your credit. The longer your history of good debt is, the better it is for your score. One of the ways to improve your credit score: Leave old debt and good accounts on as long as possible. This is also a good reason not to close old accounts where you have had a solid repayment record.

Check your credit calendar

If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short time period. Every time you apply for credit, it can cause a small dip in your credit score that lasts a year. That is because if someone is making multiple applications for credit, it usually means he or she wants to use more credit. However, with three kinds of loans such as mortgage, auto and more recently, student loans such as scoring formulas allow for the fact that you will make multiple applications but take out only one loan. The FICO score, a credit score commonly used by lenders, ignores any such inquiries made in the 30 days prior to scoring. If it finds some that are older than 30 days, it will count those made within a typical shopping period as just one inquiry.

Bill payment on time

If you are planning a major purchase, you might be scrambling to assemble one big chunk of cash. While you are juggling bills, you do not want to start paying bills late. Even if you are sitting on a pile of savings, a drop in your score could scuttle that dream deal.One of the biggest ingredients in a good credit score is simply month after month of plain-vanilla, on-time payments. The credit scores are determined by what is in your credit report and if you are bad about paying your bills or paying them on time and it damages your credit and hurts your credit score.

Not taking risk

Sometimes, one of the best ways to improve your credit score is to not do something that could sink it. Two of the biggies are missing payments and suddenly paying less than you normally do. The other changes that could scare your card issuer taking cash advances or even using your cards at businesses that could indicate current or future money stress, such as a pawnshop or a divorce attorney.

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