I'm Sandra Gibson, I'm not only the Editor here on Obares.com but I've personally built my credit score up from 535 to 685 and I'll show you how to do it by starting with getting your credit report.
Feel free to email me with any questions you may have at: info@obares.com
Emails I've received:
"I'm so glad I came across your web site. My husband and I wanted to buy a house but we knew our credit score was in the dumps. After reading your tips and 3 months of hard work I was able to raise both of our credit scores." Tammy M. - Reno, NV
"Great information I looked all over for the Equifax phone number but could never find it until now, thanks!" Tom B. - Denver, CO
"My had a low credit score for years and I had a hard time getting credit cards. After doing some reading on your site I was able to get my credit report and take action and now six months later my credit score got me a new car." Cindy R. - Austin, TX
"I never really knew how to raise credit score fast but after reading your article I'm confident I can do it myself." Jenny P. - Tampa, FL
"Sandra, You where so right. On my report I had found accounts that weren't even mine. I was so mad but I took your advice and wrote the credit bureaus to get the account correct. The worst part was the account was 120+ late so once that was removed from my credit files my score jumped 70 points on average. THANK YOU!" Lance F. - Morgan Hill, CA
Get A Free Credit Report Online
One of the first things to know before applying for a home loan, credit card or any type of credit is your FICO score and not just one but from all 3 bureaus. (Equifax, TransUnion, and Experian) There are a few companies out there that offer free credit reports some of which you probably heard of like FreeCreditReport.com or Equifax.com
Knowing what is on your credit report can help you build that FICO score even higher. Some people may be surprised to learn that there are small outstanding debts on their report. Even as small as $50.00 and once paid these small debts can really boost your credit score.
Most people think the only way to get a free copy of their credit report is to mail a letter to one of the credit bureau agencies but this is not true. You can get a free credit report online and often without a credit card. Online reports are fast and easy most companies will email you the report or allow you to download it within minutes. If you still have your heart set on getting your report via snail mail below is the contact information for the three main credit bureaus.
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 997-2493 - Equifax Phone Number
(866) 640-2273 - Equifax Phone Number
Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800 - Trans Union Phone Number
Experian
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742
- Experian Phone Number
How to Increase/Raise Credit Score
Now once you have your credit report in hand you will then need to learn how to read a credit report and what to do with that information. Below are general guidelines on how your credit score is calculated.
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Timeliness of Bill Payments (35 percent): This includes late payments, bankruptcies, charge offs and delinquencies. More than a third of your credit score is based on if you pay your bills on-time.
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Outstanding Credit (30 percent): The balance of your revolving accounts (credit cards) and installment loans. If you are always charging up to your credit limit on those charge cards then this will lower your credit score. A general rule of thumb is to never carry a balance of more than 50% of your credit limit.
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Length of Credit (15 percent): Takes into account the length of time your credit accounts have been opened for and how many times you have used them. If you haven't had credit for a long time yet this can lower your score.
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Types of Credit (10 percent): Having a good mix (auto loans, credit cards, mortgage) of credit is important to increase a score.
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New Credit (10 percent): Opening numerous credit accounts in a short time frame can lower your credit score as it looks like you are in need and might not be capable of paying.
Top Six Credit Score Tips
- When you obtain your credit report you immediately should check and make sure there are no mistakes, you can examine your history from the three different bureaus. The information may vary from the different bureaus and you must keep record of this in case you want to dispute certain items.
- Try to limit the money you spend and increase the amount of money you make. Definitely ask your friends and family to help you come up with a way to budget your money. Because we all know we like to spend it as fast as we make it
- Try and hide your credit cards, if you don't have them handy they are harder to use. You should wait to use them until you are financially stable again and can start building up your credit.
- Limiting accounts that you may have can also be done, every time you get a credit card offer you don't have to apply for it. You should look for the right credit card that has a decent credit limit on it.
- Asking for a family co-signer, sometimes when you have little or zero credit you may want some help establishing a credit line. You are now responsible for their credit as well, be sure to make your payments on time or both your credit scores will be in trouble.
- Keep your recent inquires down, don't go and try to open tons of credit limits at once. This is a red flag, most creditors will tell you no and dock points from your credit report. No hard inquiries!!!
Average FICO Scores:
- Credit scores range from 350 to 850
- Average credit score of 676
- Bad or poor credit score is considered 575 or lower
- Below average credit score is a 576 - 639
- Good credit score is a 640 - 720
- Perfect or premium credit score is a 721 - 850