Improving Credit Score

If you are cleaning up your credit report then you understand the importance of your credit score. Your credit score can impact your lifestyle more than by how much money you make.

With a low credit score you may be getting turned away from jobs you are qualified for. You also are experiencing difficulty getting approval for car loans or credit cards. When you do receive approval it is with stomach churning interest rates.

If you learn how the credit system works than you can use that knowledge to better your credit score. With a higher credit score you will be able to make the purchases you want or have extra money because you are not spending it on high interest rates.

The credit bureaus use a mathematical equation to determine your credit score. The bureau puts your credit information into a computer and the computer spits out your credit score.

This three digit number is the yardstick by which employers, lenders, and others see your creditworthiness. In fact, most new credit transactions a lender never looks at anything other than your credit score. You are judged solely by this number.

How can you use the credit system to your benefit? You need to know there are two pieces of information that are most important to the systems equation.

1. Remove negative accounts. Negative accounts on your credit report will do the most damage to your score and need to be removed.

2. Keep an unsecured revolving line of credit. This can be done by almost anyone.

The credit bureaus equation is kept secret and not released to the public. However after review of thousands of credit files it has been learned that having an open unsecured line of credit is just as important as removing negative items.

The unsecured line of credit will improve your credit score because:

1. A credit line adds a trail of positive payment history. The credit bureaus also like to see an account that is aged.

2. Improves your debt to credit ratio. The credit bureaus reward people who have high available credit and low outstanding debt.

This credit line will carry more weight if it is unsecured such as a car loan or credit card. However if you are unable to get approval, then you should consider a secured credit card or a secured loan.

The credit line will help tremendously but it is most important to delete negative credit from your report. If you can not get approved for an unsecured credit line try to remove the negative marks from your credit report and then reapply.

You can achieve a 700 credit score, no matter how bad your credit is today. Work on removing the negative listings and replacing those with positive listings.

By Justin Hutto
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To start removing negative marks use this free credit repair letter or to learn how to proceed with an experian dispute visit us.