How to Improve My Credit From Medium Risk to Medium to Low Risk

Your credit rating is based upon your credit score. The higher your credit score, the better your rating and the lower your risk. Lenders looking at a loan application are concerned with your past credit history, especially your track record with regard to making payments on time. Cleaning up your credit report and practicing good money management are two ways to improve your credit from medium risk to medium to low risk.

Instructions

1

Check your credit report. Using a site such as AnnualCreditReport.com will allow you to see your report as a whole, but not your credit score. To see your credit score, you will have to pay a fee. In both instances, you will be asked to provide your full legal name, date of birth, social security number and credit card information to verify your identity.

2

Analyze your credit report. Immediately report any errors using the website you used to get your credit report. Select the erroneous item and dispute it by clicking the "dispute" button and list the reason for the dispute. Credit bureaus are required to respond via email within 30 days of your request.

3

Look at any credit card or line of credit debt. Pay down those balances to 30 percent of their limit to lower the negative impact on your score.

4

Pay off, in full, any judgments, liens or collections listed on your credit report. This may or may not raise your score, but it will show lenders your willingness to pay debts owed.

5

Pay all debts, especially your mortgage, on time to avoid 30-, 60-, or 90-day late payments listed on your account. This action alone will go the longest way to maintaining good credit.