How to Fix Credit Report Scores

Credit report scores can increase or decrease your ability to secure financing. If you are planning on buying a home or financing a new automobile, raising your score not only helps you get approved, but your lender is more likely to give you a good rate on the loan. Rates affect the monthly payment -- the lower your rate, the lower the monthly note.

Instructions

1

Use credit cards to establish a positive credit history. Keeping credit cards locked away doesn't help your score. Building a better score involves using credit wisely. Pull out your cards a few times a month to make a small purchase.

2

Stop carrying a balance. While it's good to use your credit cards to help build a higher score, avoid carrying high balances from month to month. Get into a routine of using cards and then paying off the charges when your next statement arrives.

3

Take the hassle out of making payments with automated online systems. Forgetting to make a payment can affect your score and you're likely to pay a late fee. Keep your accounts in good standing by setting up monthly automated payments to your creditors.

4

Get copies of your credit report. Visit the website Annual Credit Report each year to obtain a free copy of your credit reports from the three major bureaus. Looking over your credit file periodically helps you catch fraudulent activity and errors that can lower your credit report score.