My Credit Report Scores Are Not Good Enough

Good credit is essential for modern life. Lenders always consider credit ratings, and charge interest accordingly. Insurance companies base rates on credit scores. Employers often consider credit as an indication of reliability, trust and commitment. If your credit score is low, you can improve your rating with the major reporting agencies using time-tested techniques.

The best way to improve your credit report score is to make timely payments each month. Credit reports always include the number of times you made late payments. Making timely payments also prevents paying unnecessary late charges.

Mortgage payments potentially have the best impact on credit ratings. Installment loans also require better credit for approval than credit card debt. Department store accounts have the lowest qualification standard and do not help scores as much as other types of debt. If you do not owe debts, you also do not have a credit rating.

Do not accept credit beyond your means. Many companies offer credit to create sales, with little regard for the impact on borrowers and lenders. This type of lending in the mortgage industry produced the stock market crash and economic recession late in 2008. As a borrower, you must refuse credit if you cannot make timely payments. Do not rely only on the advice of a seller or lender.

Check your score often. The cost for monthly review is a bargain. Each month, make sure all reported information is correct. If a reporting company makes a mistake, provide correct information and request the company remove the error. For example, make sure you are not a victim of identity theft and that all debts on each report are yours.

Federal law entitles you to a free report once a year from each of the three major credit agencies. Annual reviews are not sufficient. You must check your score more often. You may find the convenience of using a credit reporting service the best option. The best services provide three monthly reports for as little as $15.