How to Earn 5 Points on Your Credit Score

Your credit score affects your ability to get credit and to get the best rates on your loans. Sometimes, you just need to earn five points on your credit score to put your score into the "excellent" category, or at least move out of the "poor" zone. Fortunately, you can improve your credit score fairly easily. The quickest way to fix your credit is to correct any mistakes that are showing on your credit history. If you don't have any errors, improving your financial management will do the trick.

Instructions

Fixing Credit Errors

1

Look over your credit report for errors. Order a free copy of your credit report from the official government site, www.annualcreditreport.com. This will not show your score, but you can view your credit history. It will detail all of your accounts, the amount of money you owe, the amount of the original loan and whether or not you pay on time. It will also show if a company has looked into your report, which happens when you apply for credit. Look for errors like open accounts that should be closed or unauthorized inquiries.

2

Send a certified letter to the credit agency or agencies that are reporting the error. Write a letter that details the mistake. Be sure to include your name and social security number so that the company matches it to the correct credit report.

3

Verify that the errors have been fixed and your score has improved. You should receive a letter from the credit bureau after 30 days explaining the resolution. You can then order a copy of your credit report and double check that things look good.

Improving Financial Responsibilty

4

Pay all your debts on time. An on-time record plays an important role in determining your credit score, so simply making sure that you are never late can result in a gradual credit score increase. Send payments as soon as you receive the bill to be sure that your creditors receive the bill on time. Challenge any late notices that are sent in error.

5

Decrease the debt that you have. Decreasing your debt increases your available credit, which also improves your credit score. Apply all extra money to your debts so that you can pay them off as quickly as possible.

6

Diversify the types of accounts you have. You should have a mixture of the two types of accounts--fixed term loans, like a student loan or mortgage, and revolving debt, like a credit card.