How to Score Higher
Knowing your credit score is important. Perhaps even more important, however, is finding why your score isn’t higher than it is. These reasons are detailed in your score report.

Possible reasons for lower scores may include (not a complete list):
• Too much debt on existing accounts (balance proportions)
• Past delinquency on accounts (late payments)
• Too many accounts opened in the last twelve months
• Collection, Public record or bankruptcy history
• Excessive number of accounts with balances owed
• No recent or short account history

Your credit report changes day to day as your activity is reported by the creditor. For example, if you pay off your credit cards in full every month and maintain a responsible credit history, your score will gradually reflect those actions.

The types of credit you have can also improve your credit score.
Here is a list of the 4 most typical types of credit.
The most favorable would be on the top, while the least favorable would be on the bottom.
• Mortgages – absolutely the best for your credit
• Installment loans – Car loans, Student loans, etc.
• Credit cards – this is only for Visa, Mastercard, American Express, etc
• Other credit cards – Store cards, gas cards, finance companies, etc.

NOTE: Try to minimize the number of accounts under “Other Credit Cards”.

If you are more than 30 days late on any of your credits, then a Mortgage late will drop the score the furthest. With the credit cards, if you borrow more than what they allowed you to borrow (the term is called Limit), the score will fall even if you are current on your payments.

What should I do first?

1) Get a copy of your Credit Report. Read every line to make sure everything on the report is your information
2) Check for any incorrect addresses or address changes you did not authorize. These could be a sign that someone has stolen your identity and opened fraudulent accounts in your name, and is redirecting your mail to another address so you don’t find out about it.
3) Make sure the names of your banking institutions and account numbers are accurate.
4) Check for any public record information that comes from bankruptcy records, wage items, state and county court records, tax liens or monetary judgments.

If you find discrepancies on your report, you have the right to have it corrected. You need to contact each of the Credit Bureaus in writing and they are required by law to verify your claim within 30 days. Each bureau has procedures for submitting these discrepancies so contact them directly.

EQUIFAX -
P.O. Box 740241
Atlanta, GA 30374
www.Equifax.com
(800) 685-1111

EXPERIAN -
P.O. Box 2002
Allen, TX 75013
www.Experian.com
(888) 397-3742

TRANS UNION -
P. O. Box 34012
Fullerton, CA 92834
www.Transunion.com
(800) 916-8800

Checking your credit report on a regular basis and daily credit report monitoring are two important ways to fight back against data breach and potential identity theft. To get the most out of your credit report, please take a moment to familiarize yourself with the various sections in your credit report. There is no standard as to how items are listed or in what order.

Not all credit reports will have the same reported data. One lender may only use one bureau while the next will utilize all three. So reviewing one report is not an accurate method of checking credit.