We all need to know how to raise a bad credit score. Unless your credit score is at a perfect 850, then there is some room for improvement. Most people do not understand that are many ways to be proactive and raise their credit scores. It's not about just sitting back and hoping for the best. You can do more than just not messing up; you can actually follow these tips to raise your credit score.
Firstly, you need to be aware of your rights and what exactly your credit report states. There normally are several bogus items on any given credit report that can be dealt with simply. Request a free yearly copy from the three major credit bureaus. You are entitled to one copy every year from each of them. They are Equifax, Experian and TransUnion. If you make a request to each one, alternating between them every 4 months, then you will always have a fresh report to monitor your progress in raising your bad credit score.
The most effective way to raise a bad credit score is to get rid of the negative items on your credit report. You are entitled to dispute any and every negative item on your report. Even if you know the item to be based on fact, it is still your legal right to dispute it.
Once you have disputed a given item, the agency must either verify that item with a reasonable time or remove it from the report. That time period is usually between 30 and 45 days from the date of dispute submittal. The credit bureau must contact the creditor that placed the negative item and get it verified by them. If someone is lazy, doesn't find the time, makes clerical errors or otherwise messes up, you are entitled to request that the item be stricken.
This legal technique is the most powerful method to raise a bad credit score. Statistics show that 40% of the items disputed do not get verified and are therefore able to be stricken. This is exactly what credit repair agencies and attorneys charge thousands of dollars to do for you. Remember to choose the busiest business times of the year to file your disputes. You want for them to not get verified! Always send in your dispute forms via certified mail and request receipts. Keep meticulous records and you are on your way to raising your bad credit score already!
Now, you need to start making sure that you make every payment that you are responsible for on time and every time. Late payments and missed payments are the single largest contributors to the development of bad credit scores.
Keep your credit cards at roughly 30% of their maximum limit and pay them off in full every month. The second most important variable in the credit score algorithm is the amount of gap between your maximum credit card limits and the amount that is actually being utilized. If you charge them up and then just pay the interest charges, it looks bad.
You have just learned some simple, yet very powerful techniques concerning how to raise a bad credit score! Now, you just need to be patient, diligent and responsible from here on out and you will begin to see those negative items dropping off and your bad credit score beginning to rise.
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