Things To Know About Your Credit Score

If you have bad credit, then you need to get your credit fixed. Your first step is to know that the information on your credit report is right. It is not necessarily accurate, so you have to get your report from all three of the credit bureaus and put an eye on it. Beware of the errors as far as which creditors do report to which bureaus. You'll want to correct any errors that are on your report and doing it in writing will help you understand the process better.

Many items on your FICO credit score are determined by the length of time you have had credit, so if you haven't had credit for very long it might be as good as looking for a target in a minefield. Be aware of the total amount of debt that you have, and try not to have more than 30% of your credit line used at one time.

Another thing you have to be aware of is all the different methods credit score is collected. The three major credit reporting agencies use one method of screening, but if you take a look at the reward point system, these are not actually used in the credit score calculation. The reason why is the fact that with these methods, if a reporting agency does not get their money from the consumer, the credit score they have formulate for the consumer is not a true reflection of the credit report.

You may find it easy to fix your score, but you'll also need to make sure you learn the charge off tactics and how to avoid them in the future. If you want to maintain a good credit score, staying current on your bills is the key - only if you can pay 100% of your bill. Here are some helpful tips to help you stay current with your bills.

Know how much money you owe on your cards and loans. Figure out your minimum payments for all the accounts and figure out the most money you can put towards each one. If you need to go further down to the right amount, then write down that amount. Decide well in advance which accounts you will pay first, and stick with this plan.

Make sure you do not skip any payments if you don't have the money to pay on your accounts. Most people will spend money that they should be putting towards their debts, and that is not a good practice. If possible, put money aside over a certain time period and then use this money to pay on your debts.  This way you will pay your accounts on time and be able to get a handle on your finances.

Finally, if you think that you won't be able to make any payments over the next month, you should be contacting the lenders and letting them know. Sometimes they can adjust your payment plan and not get stuck taking you to court over unpaid balances.