5 secrets to improve your credit score

I will give 5 of very important steps to repair and maintain good credit.

# 1) Do not make the minimum payment on your credit cards!

Do not fall into this trap! Once you get into this habit, it will be very difficult (if not impossible) to break. If you paid a minimum payment (approximately around $ 250) out of a total of $ 10,000 in credit card debt with average interest rate of 9.99%, it will take about 20 years to pay off debt and paying an additional $ 5,000 in interest.


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The solution is to add an additional $ 100 per month for the minimum payment. It will not only save you about $ 3,500 of interest you will incur debt in less than three years.

Obviously, if you cannot afford an extra $ 100 on top of your minimum payments that you have to pay whatever you the income situation allows you to pay. Essentially, you will save a ton of money on interest, and will be debt free much sooner.


# 2) removes all fat!

What I mean by “Cut the Fat” is to keep five business lines open and close all other remaining business lines. Here’s what you should have …

Example: a mortgage, car loan (if necessary), and 3-4 credit cards. The credit cards that you need to keep are those with low interest rates, can earn reward points, and preferably the credit card companies that have good customer service departments.


Try to stay away from those who receive an annual fee. I found my credit card Credit Union and Bank are the best because you can manage them more easily with online banking for free.

# 3) It is good to use credit, just do not abuse it!

A good rule is to try to keep the balance below 33% of the limit. In this way, your credit score will remain in good standing and your payments will not get out of control. It will also allow you to stay away from the credit trap. So if your limit is $ 1,000 you keep balance under $ 330 if possible.


Debt consolidation No. 4) and a credit counselor to the consumption is bad news!

No matter how good the sales pitch is to stay away from him. It cannot repair your credit or improve your  credit score, but instead it actually lowers your score.

I suggest you go to a settlement company to negotiate your debt balances and interest rates for you.

This would ultimately reduce outgoing payments and your total debt.

# 5) dispute, dispute!

There are hundreds of millions of social security numbers issued in America.

There are only three major credit bureaus (Equifax, Trans Union and Experian) to collect all our data and credit information. They are bound to make mistakes and errors on your credit report. The only way to remove them is to challenge them in writing to the creditor and all three credit bureaus.


The trick is to send a letter with a label of receipt to all three bureaus. The Federal Act on the Fair Credit Reporting provides 30 days to answer them back. If the creditor cannot verify the validity of your debt in this period, then it will be permanently deleted from your credit report.

The folder and the credit rating

The credit report contains personal information about your habits and your financial situation. The credit score is a score (or score) that reflects your financial reputation.


The credit


The credit report contains personal information about your habits and your financial situation. When you apply for a loan or credit card, your credit file is open and information are collected, hence the importance of money management and good habits from the start.


The credit rating agencies

In Canada, there are three credit reporting agencies. These agencies collate information about your financial activities and assess them. They will then give a rating (or score) and they provide this information to financial institutions and issuers of credit cards that so request, with your approval. Your credit report may also be interested in:


One owner (before renting an apartment);
a trader (before offering you a home loan);
an employer (before you offer a job).

Usually contain from your credit

Your contact information, your name and date of birth
Your work experience (employers, positions held, income, etc…).

Your credit situation (delays, debts, payment history, amount of your line of credit organizations that have requested information on your credit file, etc…).


The credit rating

The credit score is a note (or score) that reflects your financial reputation.

Established by the credit reporting agencies in Canada on the basis of information contained in your credit file, this note on your payment habits enables financial institutions.

On a scale of 1 to 9 (1 indicating that you pay your bills within 30 days before the due date and 9 that you do not pay your bills for some time), the agencies assess your situation based on your level current and previous debt, payment habits of your debts and your bills, or even all of your debts.

The good credit score will help you get a loan easier and maybe even a better interest rate.

Improper credit rating can have significant consequences. If it is not very positive, a financial institution may then charge you a higher interest rate or simply refuse to lend you. You might even have difficulty finding employment in certain sectors.



10 Ways to Improve Your Credit Score

10. Check your credit report every year. Know what your credit score is the first step to improvement. In this age of identity theft, you might find someone using your name and credit history and fix it before the police comes calling.

9. Do not apply for new credit cards that you do not need. This could lower your score.

8. Try to keep your credit balances as low as possible. You can also ask the lender to increase your credit limit that can increase your credit score.

7. Correct any erroneous information on your report. Credit rating agencies are known for errors they have on credit reports. If you find an error, call the credit bureau and tell them about it. If it is a bank or aScore store’s fault, get them to fix it.


6. If you have damaged credit consider opening new accounts and paying them late. This can add 30 points to your score within a year.

5. If you do not have credit to consider getting a secured credit card. This is a credit card when the consumer makes a deposit to the credit card company $ 500. eg. It has therefore $ 500. Worth of credit on the card. This is a great way to establish or re-credit.


4. Pay your bills on time, since all payments over 30 days late will affect the credit score. Note that an invoice issued on March 15 with a deadline of March 31 date does not become 30 days late until April 30, but if you have the means to pay sooner rather than later. A single late payment may result in a decrease of more than 20 points.

3. To minimize the number of inquiries on your credit report does not apply to multiple credit cards. You should also not let the banks do a credit check when you apply for a mortgage. The mortgage broker is a credit report and shops located in minimizing the effect on your credit.

2. After buying a house will not go out and buy all the furniture to fill it. This will lower your score and a problem when lawyers are closing the sale. Lenders often check your credit 5 days prior to closing and will refuse funding if the score is spent too. Do not be fooled by “Do not pay until 2007” ads. The total cost of items purchased will appear on your credit report and lower the note accordingly.

1. And finally, one way to improve your credit score number…

How To Improve Your Credit Score

The formulas used to calculate credit scores are owned by private companies and are not accessible to the public. Therefore, it is impossible to know exactly how many points your score will increase or decrease depending on the actions you take.

This is the most important factor in your credit score. He says:

the dates on which you have paid your bills
late payments or missed
the debts that you have not repaid and that have been removed or transferred to a collection agency
the extent to which you have declared bankruptcy.

Hurt your score if you:

make your payments late – you take more time to make payments, the greater the impact on your credit report and your credit score might be important

have accounts that are transferred to a collection agency
declare bankruptcy

withhold payments because of a dispute and the creditor reports your payments are late.

For some financial products, any payment on time will not be considered and will not  improve your credit score. By cons, if you miss payments and your account is turned over to a collection agency, this may be included in your file and it will hurt your credit score. Among the products covered include:

checking accounts and savings accounts
Student Loans
prepaid cards (different cards secured credit).


The accounts of telecommunications, such as accounts of mobile phone and internet accounts are exceptions. The payments you make on time and late payments can be considered in your credit score.

Tips for improving your credit score

Always make your payments on time. If you cannot pay the full amount, make at least the minimum payment.

If you think that you will struggle to pay a bill, contact the lender immediately. See if you can make special arrangements to repay your debt.

Tips for Building a Good Credit Score

buildYou can do this for as many banks as you can afford the payment of interest for three months, plus the cost of the loan, you are required to pay. Make sure that these loans have a prepayment penalty. Finally, deposit money into a savings account and do not touch it.

Spend three months to pay the bill on these loans. Some say that to triple the monthly payment will increase your credit faster, but a single payment is sufficient. The objective is to demonstrate a payment history.

At the end of three months, take your $ 1,000 savings account and use it to repay the loan first, and then collect the CD. Take this money to the second bank and repeat the process. You now have three accounts on your credit satisfactory positive credit report.

Although this is a powerful and proven credit quickly growing, there are some disadvantages of a couple. Firstly, it will cost you money. Your loans will be guaranteed an interest rate between 5-10% and you will pay only three times, or 15-30% annualized interest. Since you are using this strategy for at least three months, you may have to pay $ 300 to grow your credit.


The second drawback is to use the CD to secure the loan. Although the bank wants better than some savings accounts, CD has no automatic rollover. If you do not have to liquidate a CD chain in time, you cannot have the funds to repay the loan and to engage the interest for a much longer period. With good timing accounts, you can mitigate this risk.

Apply for a department store card or oil company. They are much easier to get a VISA . You can start with a small line of credit. Make sure you do this when you make a purchase already expected, since you will often receive a discount on the bill at this time.

Use this card every month for purchases you are already going to do. For this reason, the target cards as household items that are a good choice for building personal credit. Office supply stores are great for building business credit. Pay the bill on time to prove your creditworthiness. For these types of cards, never carry a balance. The interest rate is too high!


Get a secured credit card. After your current account maintained for one year, ask them to refund your deposit. If you simply have little credit, but not a bad credit, you can skip this step.

I really struggled with whether to include this part of the list of steps to increase your credit. There are so many programs that secured credit cards are really financially unwise, their profit on the whole is questionable.

Be aware that there are high costs on some cards that are advertised nationally, and some names cards are a red flag to lenders and help you build credit at all! If you skip this step, I recommend.. However, for some of you with very bad credit, it may be a necessary step between a store card and a card major imprint.

Check my credit report

credit report

You’ve probably noticed that credit monitoring services and talk of credit reports is increasingly popular. This is partly due to the precarious financial climate currently. However, it is a good idea to keep an eye on your credit rating in all circumstances.

In searching for information on the credit, you may have encountered a variety of services credit report repair. So, what these companies do and do you really need them to fix your credit score?

Why do I need to check my credit report?

There are, of course, a number of reasons that you should check your report on a regular basis.

For most people, the main reason is to monitor their financial situation with ease, as all the required information, such as amounts due, credit cards, payment history, etc., is in one place.

However, many people choose to subscribe to a credit monitoring service and request regular reports to ensure that no suspicious activity in their accounts and loans without credit cards or taken by mistake in their names.

With about 3% of the U.S. population victim of identity theft, it is not surprising that individuals seek peace of mind by checking their report.

Of course, another reason to check your report to make sure there were no mistakes. Suspicious activity in your account may be due to fraud or theft, it may just be a simple mistake. However, this error could profoundly affect your credit rating and your potential to borrow money in the future.

What services offers credit for repair report?

If you find errors, you may want the help of a specialist credit repair which is formed to address and correct any errors found on your credit report.

Of course, the services vary in cost, but it is not always wise to choose the cheapest option. It is a good idea to research several companies and may seek reviews. Make sure you know exactly what services you will be given your money.

These services are required?

The simple answer is “no.” Services credit report repair is not necessary, because you can correct errors in your credit report. If you choose to solve the problem yourself, you should contact the credit bureau relevant and complete a series of forms. This service is always free and you may even be able to ask for advice.

However, it is worth remembering that this can be a tedious task and, depending on the complexity of the error taxation. Therefore, in some cases, it is well worth paying a credit specialist trained repair to handle the situation for you.

Although it is not necessary to pay for credit repair services report, whether it is money well spent will be determined by your personal situation. Therefore, it is wise to consider your alternatives and research on the process of care before making a decision.

Find out the best way to build credit , Basics introducing credit with its elements: report, score…and ways to build credit!