Debt Consolidation Credit Counseling In Phoenix

To improve your credit score can seem like an impossible task. The scoring model seems to factor in tons of information and makes it seem as if you have no control over your score.

This is wrong. You can focus on a couple easy steps and develop a good credit score.

1. Dispute and remove negative items on your credit report. This can be done yourself or you can hire a service to do it on your behalf.

2. Pay off any verified bad credit item on your report. In exchange for your payment have the lender remove the item from your credit report.

3. On time bill payment. It is rumored that missing a payment can damage your score up to 50 points.

4. Open a new line of credit. Your score will receive the most benefit if you have a revolving line of credit. We suggest an unsecured credit card.

This will also help you build a positive payment history by paying your monthly bill. However if you can not qualify for an unsecured credit card then open a secured card, but make sure it reports to all 3 bureaus.

Your score will get a bump if you can keep your balance at approximately 10% of your credit limit. This shows that you do use your credit and that you use it responsibly.

5. Pay down you large debts. This will help your ratio of available credit to debt. The bureaus want to see that you are not in over your head and the best way to show this to them is by having available credit.

These are the five factors you should focus your efforts on. There is however one last factor that is surrounded by controversy.

6. Piggyback credit, this is where you become an authorized user on a high credit limit credit card. The benefit is this account is now reported on your credit report and adding a tremendous boost.

This tactic was widely abused and the scoring model has made some changes. It is said to have removed the benefit however it is debated as to if those changes have taken place yet.

In sum if you can take care of steps one through five then you will improve your score. With a high credit score your quality of life will also improve.