There are many programs that promise to lower your credit score using gimmicks, but these do not always work. There are legal tricks that help you lower your score quickly in order to get a loan or a better interest rate to save money. One popular gimmick is called piggybacking. Identity theft prevention is key. This is where a person with good credit will add you to their credit account. The good credit history will transfer to your credit history and improve it. Sometimes, this can lead to a substantial increase. There are, however, other ways to improve your credit score without asking someone to do this for you. Check credit score.
Before you try to improve your credit rating, request a free copy of your credit report. Your score may not be as bad as you fear. If you do need to bring your score up, you can use these tactics to improve your score by about 20 or more points in a month. The best part is that you can do these by yourself, and you do not need to hire a third-party company to do it for you. Credit monitoring services also offer scores usually.
Long-standing Credit Accounts
If you have had credit with a company for a long time and have a good payment history with them, do not close these accounts. Long-term credit history can help boost your score. Credit cards with a high limit also help lower your score, especially if your balance is well below the limit. If you do decide to close accounts, close store credit cards with low limits. Since store cards often have a low credit limit, they give you a high debt to limit percentage, which can lower your score. You might want to get a background search online.
Past Due Accounts
If you are behind on a few accounts, bring them current as soon as you can. Having a recent late payment can lower your score.
Credit Report Adjustment
After you bring any past due accounts current, call the credit company to ask if they will remove the late payment information from your credit report. Not every company will do this, but some will. Be polite and remind them that you have been a good customers for many years, and they may take it off your report.
Credit Limit Reporting
Not all credit companies report your credit limit to the credit bureaus each month. If there is missing information on your report, your score may be lowered because the account appears to be at the limit. Ask your creditors to report your limit to the credit bureaus. If they will not do this for you, transfer your debt to another company that does report the credit limit.
Spread Debt Among Cards
Ideally, you want to spread any card debt among several cards. Choose cards with a high credit limit and low interest rate. You do not want to use more than half of your available credit on any one credit card. If you have one credit card nearly at the limit, this will hurt your score, even if your other cards have a low balance. If you can not pay off your debt, ask for your creditors to raise your limit.
Paying Off Old Debt
Before paying off old debt, make it a stipulation that the collection agency must remove all references to the debt from your credit history.
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