The credit score is a written record of your financial transactions, including the details of your current debt and how well you are repaying it. It also includes the record of past debts and their repayment. It also holds information regarding foreclosures, judgments and bankruptcies.

Based on this report, you are given a numerical score that reflects your potential to repay. The score is based on:

• The number and types of accounts you have open
• How long you have held the accounts?
• List of late payments you have made
• Current debt
• Any attempts made to open a new account.
• Number of inquiries made by the lenders.

When you apply for a loan, the lender or financial company examines this score, to determine your potential to repay the money

How to improve your credit score?

Your report reflects every entry made. However, if your score is bad, you can improve it by following these steps:

Examine the report thoroughly

If your report still shows an outstanding debt after you have paid it, you can challenge that item in it. The company you challenge has up to 90 days to respond to the complaint.

Close old credit card accounts

Old accounts that remain open add up to your total amount of credit available.

Tradelines

Tradelines can help boost your credit score. You can improve the score by making sure the debts you are paying now or in the past are listed in the report.

Car Loans

Consider adding present and past car loans in your report. Add a former that the debt from the vehicle was repaid. It will add to your overall score.

If you have bought household things like refrigerator, washer and jewelry on installments, include all these in the report as well.

Mortgage

However, the current mortgage would be listed already. If it is not your first mortgage, make sure you list the previous one if it is paid on time.

Utility bills

Make sure you pay off your monthly bills on time. This also reflects on your score.

However, there is no better way to improve your credit score than paying off your debts on time.

For credit restoration, credit repair and tradeline services, trust on 700 FICO Club.  For more details on our services, call us. You can also send us your queries online. We will be happy to help you.