Improving Credit Scores| 1-800MyMoney.com

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Statistics show that approximately 70 percent of all credit reports contain at least one error. These mistakes can sometimes cause you to be turned down for a home loan or to be charged the highest interest rate on a credit card.

You are important to us. We know from years of experience that having credit problems and many bills doesn't mean you are a bad or irresponsible person- just a good person with bad credit.

As a matter of fact we have found that many homeowners having bad credit are not even aware that a number of bad-credit (derogatory items showing a late payment history items can be removed legally) are on their report.

It's not difficult to get rid of mistakes, just time consuming. As the wheels of correction grind slowly, there may be weeks -- or even months -- of phone calls and exchanging of real mail or email.

How to Improve Your Credit

Check your credit reports. Credit bureaus may not always have accurate or up-to-date information. If you find mistakes on your reports, write the creditor and the credit bureau. When you write the creditor, describe the problem clearly and include any documentation you have (such as a copy of a check or a receipt). It's a good idea to send the letter by certified mail so you have a record that you mailed the letter and that it was received.

Reduce your credit-card balances. The closer you are to your credit limit the worse your score. Lenders see close-to-limit balances as a sign that you are spending beyond your means and will soon have trouble making your payments on time. If you have a lot of credit accounts, consider closing those you aren't using or don't think you'll need. That helps remove the temptation to overspend. Don't close all your accounts however — you need to have some credit accounts in order to maintain a solid credit history.

Ignore offers to skip a payment. If youagree to that offer you are not doing yourself any favors. The interest continues to accrue so the next payment is based on a larger balance.

Pay all your bills on time. If you pay even one credit card late, every other company will look at that and possibly raise your rate with them even if you have never been late with them.

Limit your credit applications. Too many inquiries can lower your score.

Track your spending. Sadly, many consumers don’t really know how much money they are really spending each day. By the end of the month they mave have actually spent a small fortune, yet seemed surprised when they open their bills. To regain control and stay in control, every consumer needs to have a budget, know how and when they are spending their money, and do their best to cut non-essential spending each month.

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For additional help in understanding and improving your credit scores, we have included a link to the National Foundation for Consumer Credit.

nfcc.org

Common Credit Questions

Q: What is a FICO score?

Q: How can I increase my score?

Q: Why isn’t my score higher?

Q: Will my credit history prevent me from

getting a mortgage?

FICO Scores