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Sunday, March 8, 2009

Tips to improve your credit score effectively

If you are one of the many people who have bad credit, do not worry about your bad credit rating. Instead, we must work to improve your credit score. There are several steps to increase your credit score, if the first is to obtain a free copy of credit report.

You must obtain a copy of the information on its accuracy. Incorrect information you can give a bad rating. Any errors should be reported immediately to the three credit agencies through letters identifying these errors.

It 'important that you pay your bills on time so you can increase your credit score. Payment history accounts for 35% of your credit score, when the last payment to apply the maximum wait for their credit score. Missing a single payment, can lead to a decrease in your credit score from 50 to 100 points.

Work on debt reduction

The next thing to do to increase your credit score is to work to reduce its debt as quickly and as far as possible. And if there is a big difference between the amount of debt on the card and the credit card limit, your credit score tends to increase much more.

Although May is thought that the closure of old accounts of credit to help increase your credit rating, this is not true. That's because today's methods of punishing credit andalucĂ­a close their accounts, as it tends to reduce the distance between your credit limit and its debt. This reduces, and therefore does not increase your credit score.

You never raise your credit by filing for bankruptcy, as only the damage and sometimes destroy your credit score. In reality, is to reduce the rating of at least 200 points or more will be difficult to recover and stay in bankruptcy for credit for a minimum period of seven years.

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