I want to better by credit score. How do I go about doing it?
Answers:
If you don't know what your debts are, order a copy of your credit report from experian.com and then you'll see who you owe money too. Also, I agree with the other posts that you should open a credit card and pay it off every month. Your credit score is determined by a variety of factors -- here's info from wikipedia on details...:
FICO scores and its variants are designed to measure the risk of default, by taking into account various factors. Although the exact formula for calculating the FICO score is a closely guarded secret, Fair Isaac has disclosed the following components and the approximate weighted contribution of each:
35% punctuality of payment in the past
30% capacity used: the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% length of credit history
10% types of credit used (installment, revolving, consumer finance)
10% recent search for credit and/or amount of credit obtained recently
The above percentages provide very limited guidance in understanding a credit score. For example, the 10% of the score allocated to "types of credit used" is undefined, leaving consumers unaware what type of credit mix to pursue. "Length of credit history" is also a murky concept; it consists of multiple factors - two being the oldest account open and the average length of time an account has been open. Although only 35% is attributed to punctuality, if a consumer is substantially late on numerous accounts, his score will fall far more than 35%. Bankruptcies, foreclosures, and judgments affect scores substantially but are not included in the simplistic pie chart provided by Fair Isaac.
Further, Fair Isaac does not use the same "scorecard" for everyone. The scorecards are segmented so that there are over 100 different actual scoring models that are applied to different individuals based on different ranges of input values (some scorecard segmentations include: age, depth of credit history, etc.) The implications of this segmentation are that while the approximate weighted contribution above may be an average across all scorecards, individuals will receive different scores or weightings based on the scorecard segmentation that they fall into. Some consumers have noticed their scores decreasing by small amounts for no apparent reason.
Current income and employment history do not influence the FICO score, but they are also weighed when applying for credit. For instance, an unemployed individual with no other sources of income will not usually be approved for a home mortgage, regardless of his or her FICO score.
There are other special factors which can weigh on the FICO score.
Any monies owed because of a court judgment, tax lien, or similar carry an extra negative penalty, especially when recent.
Having above a certain number of consumer finance company credit accounts also carries a negative weight (critics say that this causes a vicious cycle, locking people into continuing to use consumer finance companies).
The number of recent credit checks also can weigh down the score, although the credit agencies claim to allow for credit checks made within a certain window of time to not aggregate, so as to allow the consumer to shop around for rates.
Other answers:
pay your bills on time.
pay your bills on time.
get a small store credit card, like from macy's or Kohls or something.. Buy something small and pay it off ASAP keep doing that, buying more and paying it off. It will bring up your Credit score
Pay your existing bills on time. Get some new credit cards, charge just a little bit on them each month, then pay those off on time. I've also been told that it is better for your credit if you make minimum payments as opposed to completely paying off loans and credit debt but that is a long-term recipe for financial ruin - albeit a way to increase your credit rating!
Pay your bills on time, and don't open too many lines of credit, because too many inquiries can hurt you too.
pay your bills on time.
Pay a little more than the minimum payment.
Don't take out unnecessary credit cards like department stores etc.
Keep your credit card balances below 50% of max.
Pay your damn bills
You need a couple of substantial bills to pay i.e. a car note, cell phone bill and maybe a minor credit card. Three years of paying your bills on time is sure to bump your score, also paying off any debt that is not major.
get a copy of your credit report and start paying off those delinquent and negative charges. Contact the companies and see if they will settle for less.... once the bill is paid, request a statement showing the payment in full and then give them 60 days. After 60 days check your credit report, if it has not been taken off contact the company and let them know if was paid on (exact date) an that if they do not have it removed within the next 30 days your lawyer will be contacting them....
Work your way down the list, the more you pay off (the negative marks) the higher your score will go, along with making your current payments on time!
If you go to annualcreditreport.com you should be able to check your credit record and see who you owe, just don't check all the bureaus at once (wait several months) because that can cause credit problems too.
Yes, first and foremost pay your bills on time. But if you really want to give it a boost, go to your bank and apply for a Visa charge card. Now here is the secret. Don't go overboard and start charging everything in the world. A credit card can get you into a world of hurt. I reccommend a visa card as they usually have the less interest if for some reason you should have to pay for purchases over a period of several months. Now use the card for something that you would normally use a check or cash for like groceries. Now the secret is putting that money aside to pay for the statement when it comes due. You will find that in time your credit numbers will start to rise. To check on your credit scores try transunion.com. You get one free report, then if you wish it is only $9.95 mo and you can check on your credit any time you wish.
It sounds like you may have stuff you dont know about. First thing you need to do is check your credit report. You are entitled to check each one for free once a year (there are three bureaus and they may have different items) and also whenever you are turned down for credit. Get a copy of your report and make sure there is nothing on there you don't know about. If there, call teh company and find out about it and what you need to do to pay it off. Do NOT get more credit cards. Pay off whatever debt you have now. Pay as much as possible. If you can get a co-signer for a loan then maybe you could pay all yoru debt off and then only have one payment to make. Avoid those credit consolidation companies. While they can get you down to one payment, it is not good for your credit score unless you are severely in debt.
If you have multiple credit cards, pay them off as fast as possible. Pay more than the minimum if you can because the minimum will never get you paid off...well not for like 20 -25 years. Pay the most on the card with the highest interest to get that paid first. Then the next highest. This avoids paying too much interest.
If you only have one card, pay it off and then each month pay off your balance.
Make sure your boyfriend is doing the same thing.
Find a good job that you plan to stay with and make sure you hold on to ALL of your pay stubs. Some companies like to see at least 2 years worth of pay stubs and they prefer that you have been employed at the same place for a long period of time.
Of course, make sure you pay all your bills on time. If you have cell phones, as soon as possible get on the same plan so the cost isn't too high and you have more money to pay off old debt or save!
If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It is chock full of information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease.
Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.
What you want to do is find a credit card with good apr rates. When you obtain the card, you want to use it, but be careful not to go over the limit of the card. Then you want to pay off the bills that come in, but not all off at once. You want to pay them monthly. Paying monthly will help build a credit report. Paying it off at once won't have so much of an effect on your credit report. You want to pay off your debts, just not all at once because doing it gradually is how you build credit. This, 1-877-322-8228, I believe, should be the number to check your credit report.
Hope that was somewhat helpful. Good luck buying a home.
If you have old outstanding debts and you're not sure what they are or how much, then it would be good to contact a local credit bureau (such as Equifax) or have your bank retrieve a current credit report on you. There is usually a cost associated with this, but this is the safest way to obtain this information.
I've heard you should NEVER try to get that on-line, especially from any of the websites that offer credit reports for "free". Those providers will usually sell your personal information, and using unreliable internet sources can potentially open you up to ID theft. Handle this locally and in person if you can.
A current report should include every debt and creditor that is outstanding. Even if the balance has "charged off", you'll know exactly where you stand. Also, the credit department at your local bank should be able to best advise you on how to restore good credit standing.
Even if someon has a really poor credit history, (including bankruptcy) then this will only be reported for about seven years. If you're looking to buy a house in the near future, this is what we did, even though we had a history of some "slow-pays":
Cut up all credit cards except one major like Visa or M/C. That one credit card had a credit limit we could pay off every month (only $500), and we designated that for emergencies ONLY. (Such as major car repairs, necessary travel to reserve hotel rooms, unexpected dental or medical expense).
Make sure all your payments remain current. If all the due dates fall on the same time of the month, you can contact the credit card companies yourself to see if they will reschedule your payments for another day of the month. That way you're not suddenly bombarded with everything coming due from one paycheck.
Pay off the lowest balances first. Make minimum payments on every other card, but send as much extra as you can to the card targeted for pay off. Once you pay that first card off, use the money you were sending them each month, add it to the minimum payment on the next lowest balance, and repeat the process until all cards are paid in full!
(ie: You owe JC Penney's $850 with a min. pay of $50/month; Visa $1,250 with a min. pay of $180/month; and M/C $1,500 with a min pay of $250/month. Pay off JC Penney's first. Try to send $75 to $100+ every month if possible. As soon as you pay off JCP, add that $100 to your minimum payment to visa, and send them $280+/month until it's paid in full. Then add that $280 to the minimum payment on the M/C, and send them $530 per month until paid in full.) This strategy REALLY REALLY WORKS.
If you have ANYTHING left over, even if it's only $25/month, put it aside in savings. You'll be surprised how that will add up, and it will help you when the bank is evaluating you for a mortgage.
If you're REALLY in trouble, contact a local credit counseling agency for assistance. This will work against your credit report initially, but they can help you lock in your interest rates or reduce your payments to make getting out of debt sooner a possibility.
Hope this helps! Good luck to you both....