If you are worried about your credit, help is available -- starting with finding out where you stand. Order your credit score from the Myfico website. According to Experian, a good credit score is 700 or higher; with a score in this range, it becomes easier to qualify for refinancing. Also, obtain your free credit report from Annual Credit Report to check for accounts in collection and for late payments. Then, learn solutions to boost your score and improve your credit.
Meet Due Dates
Open credit card and loan statements when they arrive and note the due date. Paying late is a key way to destroy your credit score. Since timeliness makes up 35 percent of your credit score, it's imperative to respect due dates and get payments to your creditors early or on time.
Keep Balances Low
Don't get into a routine of charging items and leaving the charges on your credit card from month to month. Paying off debt and keeping your balances on credit cards below 30 percent of the credit limit helps solve credit problems by increasing your personal rating. Pay more than the minimum to reduce debt and once you've reduced or paid off the debt, start paying off balances in full each month.
Negotiate with Collectors
Collection accounts and delinquent bills will hurt your credit score. Resolve these debts by paying off the balances in full, establishing a repayment plan to pay off the debt or negotiating a debt settlement with your creditors (pay less than the balance owed to satisfy debt). Ask creditors to update your credit report once you've paid or settled the debt.
Fix Credit Report Mistakes
Once a year order your personal credit report from Annual Credit Report. You can receive a free annual report from each of the three bureaus. Checking your report is imperative to detecting creditor errors and fraudulent activity. Annual Credit Report features a link to file an online dispute if your report reveals inaccuracies.
Diversify Credit Accounts
The type of accounts held in your name makes up 10 percent of your credit score. For this reason, it's wise to maintain diverse accounts, such as a credit card, student loan, auto loan and mortgage loan.
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