here's a lil info i have on my computer
TIPS FOR
RAISING YOUR
SCORE
■ Pay your bills on time.
Delinquent payments and
collections can have a major
negative impact on your score.
■ If you have missed payments,
get current and
stay current. The longer you
pay your bills on time, the
better your score.
■ Be aware that paying
off a collection account,
or closing an account on
which you previously
missed a payment, will
not remove it from your
credit report. The score will
still consider this information,
because it reflects your
past credit pattern.
■ If you are having trouble
making ends meet,
contact your creditors or
see a legitimate credit
counselor. This won’t
improve your score immediately,
but if you can begin to
manage your credit and pay
on time, your score will get
better over time. And seeking
assistance from a credit
counseling service will not
hurt your score.
■ Avoid credit repair
agencies that charge a
fee to improve your score
by removing negative, but
accurate, information
from your credit report. No
one can force credit bureaus
or lenders to remove accurate
information from a credit
report. Credit repair companies
often take your money
without delivering what they
promise.
1. Payment History
What is your track record?
Approximately 35% of your score is based on this category.
The first thing any lender would want to know is
whether you have paid past credit accounts on
time. This is also one of the most important factors
in a credit score.
Late payments are not an automatic “score-killer.”
An overall good credit picture can outweigh one or
two instances of, say, late credit card payments.
But having no late payments in your credit report
doesn’t mean you will get a “perfect score.” Some
60%–65% of credit reports show no late payments
at all. Your payment history is just one piece of
information used in calculating your score.
Your score takes into account:
Payment information on many types of accounts.
These will include credit cards (such as Visa,
MasterCard, American Express and Discover),
retail accounts (credit from stores where you do
business, such as department store credit cards),
installment loans (loans where you make regular
payments, such as car loans), finance company
accounts and mortgage loans.
Public record and collection items—reports of events
such as bankruptcies, foreclosures, suits, wage
attachments, liens and judgments.
These are considered quite serious, although older
items and items with small amounts will count less
than more recent items or those with larger
amounts. Bankruptcies will stay on your credit
report for 7–10 years, depending on the type.
Details on late or missed payments (“delinquencies”)
and public record and collection items. The score
considers how late they were, how much was owed,
how recently they occurred and how many there
are. A 60-day late payment is not as significant as a
90-day late payment, in and of itself. But recency
and frequency count too. A 60-day late payment
made just a month ago will affect a score more
than a 90-day late payment from five years ago.
How many accounts show no late payments. A good
track record on most of your credit accounts will
increase your credit score.
