How to Raise Your Credit Score Without Credit Repair

Your credit score is very important for the terms of any credit you receive, such as the interest rates, the amount of credit, and the length of time you have to pay it back. It can affect your credit cards or loans, your insurance premiums, and even whether or not you get a job. The good news is that you can take steps to improve your credit score on your own, and it is not necessary to have to go to a credit repair agency to do so.

Instructions

1

Correct errors on your credit report. You can get one free copy of your credit report each year from each of the three big credit reporting agencies--Equifax, Experian, and TransUnion. This will let you see if there are any mistakes or errors that need to be corrected.

Correcting errors is necessary because if you have had any identity theft problems, they would show up here. It is also possible that wrong information was put on your report. This is not at all unusual.

2

Pay your bills when they are due. According to Experian, this is the single most important thing you can do to raise your credit score. It takes time, however, for this to affect your credit score, but it is certainly the best tool you have and it will pay off in the long run.

3

Reduce your credit card debt. Having too high of a debt-to-credit ratio is a warning to potential lenders. It is recommended that you limit your debt to about 20 percent of your income. They like to see that you have some credit, but continue to keep your debt under control and not regularly try to max your credit cards out.

This ratio is important, but you should not close out credit cards just to correct it. This will be recorded on your credit report, and it will reduce the number of open revolving accounts, which will lower your credit score. Closing cards will also reduce the amount of credit you have available, which may also lower your credit score.

4

Avoid moving balances around. When balances are moved, it can be seen on a credit report. This makes it look like you could be having trouble paying your debts, or you continually like to get new credit cards--both of which spell potential trouble to lenders. MyFICO suggests that paying down your debt is better than moving it around.