How to Increase a Beacon Score

A borrower's credit score is the numerical representation of his past credit history. It shows a lender a borrower's ability and willingness to repay debt. There are three credit bureaus who create credit scores: TransUnion, Equifax and Experian. The Equifax credit score is known as a beacon score. With a few simple steps, a borrower can increase his beacon score and his other two credit scores as well.

Instructions

1

Pull a copy of your credit report. One can be pulled for free from AnnualCreditReport.com once per year. You will need to provide the service with your full legal name, address, credit card information, Social Security number and date of birth to verify your identity.

2

Comb the report for errors. Immediately report any to the credit bureaus through the website. This can easily be done by selecting the erroneous line item, clicking the reason for the dispute and sending an email to the credit bureau. Each credit bureau is required to respond to your request within 30 days via email.

3

Pay down all lines of credit, including credit cards, to less than 30 percent of the credit limit. This will quickly raise your credit score.

4

Pay all of your debt payments on time. If any payments are behind, catch up quickly to help raise your score.

5

Pay off any negative credit items, such as bankruptcies, judgments, liens or collections.

6

Limit the number of creditors who check your credit by providing potential lenders with a copy of your credit report. Only allow the lender you choose to provide you with a loan to check your credit.

7

Avoid closing old credit cards to add length to your credit history. Keep them open by making one necessary purchase on each one per month and then pay in full at the end of the month to avoid interest charges.