How can you improve your credit score?

There are many misconceptions about credit in today's market.  Many assume their credit scores are less than adequate and when actually they qualify.  I also have sucessfully worked with those that needed to improve their credit.  Many don't know where to start or have never been given a plan to rebuild their credit.  Let me help you work up a financial plan and timeline that fits your budget.  It very rewarding to see those prosper in the area of home financing.  There are strategies to improve your credit scores and a few are listed below.

For those preparing before applying for a loan, make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. You can order a copy of your credit report through annualcreditreport.com once a year without it affecting your credit score.  Dispute any inaccuracies if any. 

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle. 

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.

Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.  Keeping your balances at 50% or less than the credit limit will keep that credit working towards your score and not against it.

It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.