Making Your Credit Score Better There are steps you can take to improve your situation California (I- Newswire) December 16, 2011 - If you get in over your head financially and rack up more debt than you can handle, more than just your pride suffers - your credit rate will be negatively affected as well. This will reduce your creditworthiness and inhibit your ability to access the financing you might need. But the good news is that you don't have to dwell in this state - you can improve your credit scores. Your payment history, outstanding loans and general indebtedness are evaluated by the three credit bureaus: Equifax, TransUnion and Experian. Based on that data, your profile is assigned a number between 300 and 850. This number is what lenders use to determine whether you will qualify for a loan. So if you have a bad credit score, how can you make it better? First, make payments over and above the minimum payment due. Credit bureaus look not only at the amount of debt you have outstanding, but also the length of time it takes to repay the debt. Next, make a plan. Mot people don't realize that if they are behind on their bills, their lenders will consider debt negotiation a revised payment plan or even forgiving a portion of the debt. For lenders, negotiating is cheaper than paying a debt collection service or paying court costs. Go to your lender and ask for more time to make payments, and be prepared to provide a revised payment plan. Another thing you can do is to switch from credit to debit cards. You should work to repay this debt right away, as credit cards often have high interest rates. Then begin using your debit card instead of reaching for that credit card. You should also cut up your retail store cards and pay them off. The card may get you 10 percent off at purchase at first, but in the end, the temptation to overspend will lead you down the wrong path. And the more open accounts you have, the lower your credit score. Check your credit report carefully for errors. Take car of those errors as soon as possible. Also, credit reports have space for you to provide your comments. This is where you can explain why a debt hasn't been paid or point out errors. This won't boost your credit score, but will help when a lender is reviewing your report when considering you for a loan. Remember: a low credit score isn't the end of the world. You can make it better with discipline and focus.
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