Improving Credit Score: Errors, On-Time Payments, Collections

In part one of this multi-part blog series, we went over some basic ways of improving your credit if your score is a problem. Credit score plays a huge role in several financial areas, including getting approved for many kinds of loans, and those with a low credit score will often be looking for simple ways to raise it up to more acceptable levels.

At 1st Choice Money Center, our short-term loan options like installment loans, title loans and others are often ideal for those looking to raise their credit. They may allow them to establish a payment history in a short period of time, raising their score and helping to qualify for better terms on future loans. In addition, here are some more simple tips on how to raise your credit score.

improving credit score payments

Dispute Any Credit Report Errors

A key area to be cognizant of when trying to raise your credit score is to ensure that all the information reported and held by the three major credit bureaus (Experian, TransUnion, and Equifax) is accurate. If you believe that any of the information in your credit report is inaccurate, it’s important to contact the relevant bureau directly and dispute the errors.

These bureaus are required to investigate any disputes, and if they determine that an inaccuracy has been reported, they must correct it. Doing this can help you be removed from negative reports which would otherwise harm your score, or prevent inaccurate information from negatively influencing it.

On-Time Bill Payments

Whether we’re talking about credit bills, home bills or any other kind of payment, it is important to make sure that you pay them on time. It may seem obvious, but even a few late payments can have a significant effect on your credit score.

If you are not used to this practice or if for some reason you are having trouble meeting payment deadlines, consider setting up auto-payments or using calendar reminders. There’s no simpler way to lower your credit score than missing payments, and any practical steps you can make to ensure it does not happen could be beneficial.

Pay Off Collections Accounts as Quickly As Possible

If you have any collections accounts appearing on your credit report, it’s important to pay them as soon as you can. Not only will this remove the negative effect of the account on your score, but it can also help improve your debt-to-income ratio, which is what potential lenders look at when considering you for a loan.

However, it’s important to note that you should only pay the debt if it is legitimately yours. If you are not sure, contact a financial expert and have them review your credit report first.

By following these simple tips, you can begin to raise your credit score and increase your chances of qualifying for better loan terms in the future. Stay tuned for the final entry in our series, where we’ll go over even further tips here. For more on how to raise credit, or to learn about any of our title, installment or other short-term loans, speak to our team at 1st Choice Money Center today.