Are you accidentally lowering your Credit Score?

Your credit file is composed of many things: how timely you pay, how much debt you have, how old your credit history is, the types of credit that you have in use, as well as any new credit. New credit shown on your credit report can mean the new car you purchased or the account you just opened at the department store but never used. Even if you don't use the store's card, it will lower your credit score because it's viewed by those who evaluate your creditworthiness as an opportunity for you to increase your debt.

Check your Credit Report Periodically

All types of insurance issuers (automobile, home, health, and life) review applicants' credit reports before making policy rate decisions because they believe that there's a correlation between financial responsibility – or irresponsibility – and the amount of claims made.

Disputing Negative Credit Entries

If you have negative items on your credit report, there is something that you can do about it. You have the legal right to dispute any negative or incorrect entry in your credit file at any time; and by doing so, you make absolutely no admission of liability for the debt. In disputing a negative item, you're merely challenging the accuracy or validity of the information reported about you.

How to Boost Your Credit Score Quickly

Rebuilding your credit can be an exceedingly slow and painstaking process, but there are some strategies that you can use which may give your score a kick in as little as a month or two.

How to Boost Your Credit Score Quickly and a few ways not to

Disputing everything bad entry in sight. This tactic is used by many of the more disreputable "credit repair" companies to saturate the credit bureaus with disputes about anything and everything. Because the disputed items are supposed to be removed from your file if the bureaus can't confirm them within thirty days, the "credit counselors" boast that they've actually cleaned up your file for you.

It's More than just Paying your Balances

Paying off your monthly credit card balances is a good thing to do - a very good thing. As a matter of fact, it's what you should be endeavoring to do.

The Importance of Your Credit Report

Your credit report is a very important compilation of information about you. It lists a number of personal identifiers, such as your Social Security number, your date of birth, current and past addresses, even your current employer. It also reveals present and past loans, credit cards, mortgages and any other reported debts.

Your FICO Score

The Fair Isaac Corporation, or FICO, scoring model is a statistical means of assessing how likely you are to pay back a loan. Used by each of the three national credit-reporting agencies, it measures the degree of risk that you represent to a lender. The score is based on all credit-related information contained in your credit file.

Debt Settlement

Not being able to manage debt - which is just an extension of not being able to manage one's personal finances - is a major cause (through stress) of many health as well as marital difficulties. It's therefore important to learn how to effectively control your debt; and if it's already out of your control, what you can do to survive the situation.

Your Rights in Debt Collection

The federal government mandates specific rights for consumers with regard to debt collection and credit reports. Individual states may provide additional rights, as well. There are two federal laws with which you should become familiar in order to protect and exercise your rights: the Federal Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA).