To fix your bad credit score what you need to do first is get information on what effects your score. Some such factors you have to gain knowledge about include:
- How these credit scores get calculated?
- Are credit scores a time sensitive thing?
- How DTI ratio is related to credit scores?
- Do multiple newly opened credit accounts affect scores?
The amount of knowledge you are able to gain on above mentioned topics will decide how effectively you improve your scores. One of the easiest methods which is used for improving scores is of disputing errors. According to federal laws any credit bureau has to investigate disputes that you raise and provide you a reply within a reasonable time frame. In this context what the bureau does is that it sends the complaint to the creditor to validate it. Most often a creditor does not reply within thirty days which he is required to. Thus the bureaus remove such entry from your credit report when a reply is not received from the creditor. Another thing is to pay close attention to your collection accounts. With time as these accounts become older, they have lesser effect on your score. If you are thinking about repaying any such accounts then choose the recent ones. You need to be aware here that payment on a collection account resets the seven year clock for which such an account remains on your report. To fix credit score, store cards are another very good option. You can develop excellent credit history using departmental store card, gas cards & store cards before contacting banks for credit cards. But one thing to take note of is that many such stores do not report credit history on an account to credit bureaus. So before getting such card you must inquire whether they report account history to the credit bureaus or not. If you follow the above mentioned steps it will become much easier for you to fix your credit score once & for all.