Fixing Your Credit Score

You don't need to hire anyone to fix your credit. It's one of those things that, if you want it done right, it's better to do it yourself. The best way to improve your credit score is to pay everything on time, every time and reduce your account balances as rapidly as possible. Then it's just a matter of time before your credit improves.

A couple more things to keep in mind, credit agencies like to see a variety of credit. They want to know that you're capable of handling all types of borrowing and that you are responsible with your money. So it's better to have a mix of revolving credit, secured debt like mortgages or car loans and student loans. Then too, the longer your credit history, the better. As you pay off your credit cards, don't cancel the cards, just stop using them. The available unused credit and the amount of time you've had your card, will help improve your credit score.

Last, but not least, you need to use credit to build credit. I had a friend who was turned down for a mortgage, even though she and her husband both had well paying jobs, thousands in savings and no debt. The problem was, they never used credit cards or took out loans for anything, so they had no credit history at all. You don't have to carry balances on your credit cards, but you do need to use them to build up your credit history.

One thing everyone should do is, review their credit reports annually. You can get a free copy of your credit report once a year from the three major credit reporting agencies by visiting:

http://www.annualcreditreport.com/