5 Things You Must Do To Build A Super Credit Score

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Do you know what your credit score is right now? No? Well, the first step for you is to obtain a copy of your credit report and learn your score. You will get your complete credit history, every transaction, what you purchased on credit, rented, leased, your loan history, and payments made to credit cards and utility companies. Everything is laid out showing whom you owe, the dates, whom you paid, and, most important, if you paid on time as promised.

Yes, you are entitled to this free annual credit report from each of the three major credit bureaus and there is only one government site where you can get these free reports. More on that in a minute.  

1. Once you have your free annual credit report, check it for errors, mistakes, and charges that you know are not your doing.

I found that this is the easiest way to improve your credit score fast. You will challenge anything that is not being correctly reported. I caught a major error and gained 10 points on my score within 30 days. If you find an error, contact the business or person who reported you to the credit bureau if you can prove the charge is not yours. Get them to correct it. As insurance, you must challenge these errors in writing to the credit bureas. Tell them your story. They will investigate and report back to you, usually within 30 days of your challenge.

2. Get your past due payments paid up to date.

On your report you will see what they call "aging." This shows your payment history in 30-60-90 day payment increments. Bring late payments up to date and pledge to keep them on time from now on. Late payments kill good credit scores. Have collection agencies been after you or have you gone bankrupt?                                                                                               

Collection claims are a major problem. These will take a personal phone call from you to make arrangements to clean these up. Bankruptcy will be on your credit record for up to 7 years and you cannot get that erased but you can counter-balance bankrupty by building a clean credit history that shows you are now a responsible individual.

3. What is your income-to-debt ratio?

A big red flag to creditors is the amount of available credit you have compared to how much of that credit you are using. If you have $10,000 available credit and you have borrowed $8,000, you look nearly maxed on credit. Only borrow 50% or less of what you have available because your credit availability will affect your credit score. It is a formula that calculates your score based on income, typical living expenses, and your history of paying your bills.

4. Keep your social security number to yourself until the last minute.

When a lender makes an inquiry about you into the credit bureau, it is logged. Multiple inquiries can look suspicious to potential creditors so here is what I do when I apply for credit.

After I do my research into interest rate, fees, and charges, and I like what I see, I provide everything they want to know except my social security number. The only number I give them is my credit score and ask them to base my worthiness on all the information I have provided and on the score. If they say they will grant me the credit based on that information, I will then give them my social security number to seal the deal. 

5. It takes time to build your financial future.

It takes time to build a great credit history and credit score. It may take weeks, months, even more than a year to get your score to over 700 but it is worth the time and effort. Many financial options will open to you when your credit history reflects your new ability to manage credit and debt.

Don't fall for marketing hype. To get your free annual credit report go to www.ftc.gov/freereports or keep scrolling down.

To learn how to get your score over 700, visit Annual Credit Report Scam for Free videos, articles, and discussion to help you improve your credit score fast. It's a Free blog. No signup for anything. Visit now.

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