Section Subtopics What Is A Credit Report? What Can You Do To Improve Your Credit Score? What Is On Your Credit Report? Who Can Check Your Credit Report? How Does A Lender Use Your Credit Report? Credit Safety Expense Ratios

How Can You Improve Your Scores?

  If you would like to improve your credit scores be aware that

  it will take work and time.  But if you want better scores, and

  are willing to do the work and spend the time, there are

  several things you can do that can bring gradual and

  sometimes immediate results.  Here are the three most

  important:

  1. The first thing you'll need to do, if you don't already do it,

  is pay everything on time.  If there was a 30 day late last

  month, make it the last one ever. If you've been late in the

  past, every month that you are on time (without doing

  anything else which might lower your score) should bring

  about a 7 - 10 point increase in your score.

  2. Go to work on the items that are dragging down your

  score.  If you have any collection accounts or civil judgements

  outstanding you'll want to pay those off as soon as possible.

  However, rather than simply paying the balance which will

  drop your score slightly (because of the recent activity on the

  account) before bringing it up gradually, make an effort to

  negotiate with the creditor to remove the item altogether.   Ask

  them to remove the item in exchange for your paying it in

  full.  This can bring a 30 point increase immediately.  But

  remember, if they agree to such a deal, get it in writing from

  them before you pay a dime -- once they have your money

  you've got no leverage to get what you want.

  3. Bring your balances down in relation to your limits.  This

  aspect of your credit report alone counts for approximately

  30% of the score.  However, it is not necessary to bring the

  balance to zero, as this may may actually hurt your score

  if it stops you from demonstrating a timely payment history. 

  If you are able to bring your balances below 25% of the limit

  this will improve your scores.  

How long will it take to improve your score?

  Negative items affect your credit score much more quickly

  than positive items. Late payments can negatively affect your

  score immediately, whereas paying bills on time may take 6 to

  12 months to generate a significant improvement in your

  score.  Again, paying on time and paying off outstanding

  collections or judgements will generally raise your score

  7 - 10 points per month. Removing a derogotory altogether

  will raise your score approximately 30m points.

How long Does Information Stay on My Credit Report?

  Most information remains for up to 7 years.  Bankruptcies can

  remain on your credit report for up  to 10 years, while other

  public record information can remain for up to 7 years.

  Information about an account will cycle off of your report

  after seven years if no new information is reported (for

  example, a 30 day late will disappear from your report seven

  years after it is reported closed by the credit grantor.)

  Most inquiries stay on your credit report for up to two years.