How Can I Improve My Credit Score
Is a low a credit score holding you back from getting the credit you need?
If you’ve been asking yourself “How can I improve my credit score” then you’ve come to the right place for some answers.
Now, I’m sure you’ll agree there’s no shortage of tips circulating the internet such as the typical; pay your bills on time, don’t close your credit card accounts, keep your balances low, etc.
While these are all helpful and do play an important role in how you can improve your credit score it doesn’t address the single greatest factor that is damaging your scores; derogatory marks.
Derogatory marks on your credit reports such as a bankruptcy, foreclosure, collection account, late payments, etc. can have a long-lasting negative impact to your credit score.
According to FICO® if you went through a bankruptcy it would drop your scores anywhere from 125 to 200+ points and would take 5-10 years for your FICO® scores to fully recover!
Now don’t worry, this of course is an estimate assuming that no new delinquencies occur, but it’s not taking other factors into consideration such as credit restoration, new credit, credit utilization, building new credit history, becoming an authorized user and many other factors.
Did you know derogatory marks account for 35% of your credit scores?
So instead of asking yourself “How can I improve my credit score” ask “How can I repair my credit?”
Remember, derogatory marks have the greatest percentage of impact to your score. Repairing your credit is simply one of the best ways to improve your credit score but should not be the only action your taking.
You have two options for repairing your credit; either do it yourself or pay for a reputable credit repair service to do it for you.
Now before you question whether you can, the fact is you have every right to repair your credit; section 611 of the Fair Credit Reporting Act protects your right to do so. The tough part is it’s a self-policing law and it’s entirely up to you to know your rights, monitor, protect, and repair your own credit.
So why consider a reputable credit repair service?
It’s simply a matter of convenience and knowledge of the laws protecting you and the laws that regulate the credit reporting industry.
Just like you can do your own taxes many of us prefer to hire an accountant because we simply have no clue and time to understand the 73,954 pages of tax law.
So the next time you want to know “How can I improve my credit score” one of the ways is to address the derogatory marks on your credit reports. This can include a combination of settling accounts, dispute processing, etc.
Taking the right action steps is always best than inaction or complacency.
Ready to repair, restore and reclaim your excellent credit scores? Submit your name and email below to receive my FREE course ’7 Steps To Superior Credit’ ($497 value) =>
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, and All Business.com .His articles and blog; Business Credit Blogger.com, have been featured in ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’. You can also find Marco on Google+.
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