How do I improve my credit score?

[jack]

Hi everyone, I have been going through my credit scores lately and feel as if it is time to get someone working on it. I really don’t have any particular reasons so as to have low scores but I need someone to work on them to make them better in case of a loan (that I expect to take in a few months) I need. So, can you please suggest me some good agencies that could help me out.

Thanks in advance!

[maat55]

You are your best agency. Pay your debts on time.

Are you behind on any payments?
You should list your debts with amounts and interest rates.
List your monthly income and expenses.

Many here can advise you with you providing more information.

[disneysteve]

I really don’t have any particular reasons so as to have low scores

There must be some reason why they are low. Have you been late with any payments? Did you ever default on a loan? Is your utilization ratio high, meaning you've charged a high percentage of your available credit? Is your debt to income ratio high?

Tell us why your score is low and we may be able to suggest ways to raise it.

[Runaway Finances]

disneysteve is on the right track. There is a reason they are low. Chances are if they are low, you don't need any more debt. You need a spending plan. Get you spending in control so you can afford appropriate debt. I see this all the time and the problem is we borrow for things we WANT not which leaves us not enough money for the things we NEED. Try to not borrow for discretionary purchases and watch what happens. Your credit score will come back up if you are paying on time on your debts and you don't have as much debt. This won't happen over night though.

[Seeker]

Hi everyone, I have been going through my credit scores lately and feel as if it is time to get someone working on it. I really don’t have any particular reasons so as to have low scores but I need someone to work on them to make them better in case of a loan (that I expect to take in a few months) I need. So, can you please suggest me some good agencies that could help me out.

Thanks in advance!

The only person who cares the most about you or your money is you.

To hire someone to "make them better" means that you pay someone else to do something that only you can do -- control your spending. Plan your spending. Take control over your money. Anyone else would tell you the same thing (take control of your spending); and "agencies" will take some of your money to tell you that very same thing.

If you have low credit scores it's usually because you are overextended on debt. Can you pay your bills in full each and every month? If you answer no to this, then you are paying interest to carry forward that debt. The longer you pay the minimum due on credit cards, the worse your total debt becomes.

There are no good agencies that have your best interests at heart. Only you.

If you want further help here, then post your income and outgo each month (post your budget). Post your Credit card debt totals, how much you pay each month, and the interest rates.

People here can and will advise you on where you may cutback or eliminate; but we can only help if you provide numbers for us to work with.

[ActYourWage]

There must be some reason why they are low. Have you been late with any payments? Did you ever default on a loan? Is your utilization ratio high, meaning you've charged a high percentage of your available credit? Is your debt to income ratio high?

Tell us why your score is low and we may be able to suggest ways to raise it.

If you haven't borrowed money or use CCs in a long time then your credit score will drop. Credit Score is not necessarily a reflection of debt, late payments....etc.

[Johansen8]

Review your credit report for any errors and correct glitches that may not be accurate (but are still hurting your current score). You can obtain a free copy of your credit report by visiting Free Credit Report and Score Online from CreditReport.com.

Refrain from opening a lot of new accounts over a short period of time, especially if your credit history is on the shorter side to begin with.

Pay your bills on time.

Don't open any credit lines you probably won't use. For example, don't open a lot of store credit cards just to get the initial 10 percent discount.

Instead of moving credit card balances to lower rate cards, try to pay them off. Transferring balances can change the ratio of your total credit card balances to your total available credit lines, hurting your credit score.

[Alex_Adviser]

Its better to do it yourself than to hire someone to do it for you. Following are some ways how you can improve your credit score:
1. Pay your bills on time. This can be tougher than it sounds when you're living paycheck to paycheck, but it's perhaps the most important thing you can do to keep your credit strong. Even if you can only afford the minimum payment for awhile, it's vital to avoid late or missed payments.

2. Don't close old accounts that are paid off. Part of your credit score is based on the ratio of your total debt compared to your credit available. Closing old accounts will reduce your available credit and your credit score may suffer.

3. Order copies of your credit report from Equifax, Experian, and Trans Union. This is such a simple step, but many people never do it. If you're going to have any hope of improving your credit, you need to know what you're up against.

4. Dispute inaccuracies. Review your credit report carefully to spot any inaccurate or outdated information. If you see something that doesn't look right, question it. You should do this in writing by contacting both the credit agency and the institution that reported the incorrect information.

This process can be time-consuming and requires a good deal of follow up. You may want to consider hiring experienced credit repair lawyers to help you.

5. Speaking of credit repair specialists, you must be extremely careful who you choose. There are a lot of scammers out there looking to cheat you out of your money. Make sure you choose a legitimate and reputable firm to avoid being ripped off.