How To Improve Credit Score in 2009

How you can improve your credit score in the new year.

Its 2009! A new year means a fresh start, and is a perfect opportunity to improve your credit score. As a result of the sub-prime credit and lending crisis, lenders are demanding a higher credit score to approve new credit. <br><br>That means that it is more of the highest importance to focus on improving your credit score. So, lets get started on your road to raising your credit score. <br><br>First, to improve your credit score, its important that you understand how your credit is calculated. Your credit report contains data including your payment history, debt total, and available credit.<br><br>This information is strategically placed in a mathematical formula, and then calculated to generate your credit score. The determined number is a highly accurate prediction of how likely you are to pay your bills. <br><br>The highest possible credit score is 850 and the lowest is 300. The average American has a score somewhere between 600 and 800. To really benefit, you must increase your credit score so it is at least in the average range. <br><br>The next and perhaps most important step is to increasing a credit score is identifying credit information that damages a good credit score. This includes but is not limited to collections, late pays, repossessions, charge-offs, bankruptcy, and judgments.<br><br>About a quarter of all credit reports have an error that is serious enough to keep a consumer from receiving credit approval. And, another large amount of credit reports contain mistakes that force a consumer to pay higher interest rates on big ticket items like mortgages or car loans. <br><br>When you improve your credit score, you will save money, time and embarrassment. Mistakes can end up on your credit report for numerous reasons, including: mistaken identities, identity theft, and administrative mistakes. <br><br>Regardless of the reason, if you want to raise your credit score, you must dispute any errors you find. When you find an error, you should write a letter to the top credit bureaus and ask them to investigate the mistake. <br><br>Thanks to the unstable economic times, its more important than ever to raise your credit score. <br><br>By taking the steps listed above, you will be on your way to a stellar score, and a better life.

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