Your credit score is very important. We discussed yesterday how to start a credit history. This is usually for 18-20 years old’s that never had a credit card or loan. Today we will explain how to fix a poor credit report.
Why you should care if you have poor credit?
How does one’s credit come poor?
- Payment History – 35%
- Credit Utilization or Amounts Owed – 30%
- Age of Accounts 15%
- New Credit – 10%
- Types of Credit In Use – 10%
What happens when you have poor credit
How do you make your credit score increase?
High credit utilization
Unpaid Credit Card Accounts
- If the charge is valid, use one of the ways we discussed earlier to remove it. (Lower APR, make a settlement etc.)
- If the charge is not valid, then you are able to dispute it. to dispute a charge you need to know which credit bureau the delinquency is on. All credit bureau’s have an online form to fill out to dispute inaccurate information. Fill out the form, and within 2 weeks you should hear back from them. If there is any substance to your claim, the negative account should be completely removed from your credit report. Read Point Me to The Plane’s narrative on how to dispute an Experian error.
There are many more minor factors that influence your score. Opening a new credit card drops your score by 5 points. Having a lot of new credit lowers your score as well. At the end of the day, these factors are temporary, as minuscule compared to the delinquencies and unpaid accounts.
Keep tabs at all times of your credit so you can know where you are holding. You can view your credit report for free once a year by visiting annualcreditreport.com. We recommend to take advantage of this offer, and do it yearly.
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Keeping tabs on your credit score is very important. There are a few ways to improve your credit score. If you have accounts in collections, try to settle them with the collectors. Dispute inaccurate information. Pretty soon your “poor credit score” will be looking good.