A lot of people do not realize that one the largest factors (30% of your overall score) that affects your credit score is the amount of revolving debt that you are utilizing. You need to keep your revolving ratios below 50% in order for them not be a negative factor on your credit. To see positive results, you should be below 35%.If there is any derogatory information being reported erroneously, dispute it directly with the credit bureau. Often times if you dispute it with the creditor they will give you the runaround, and you may never get it resolved. If you dispute it right with the credit bureau the creditor has 30 days to prove the debt is valid. If they cannot provide the necessary documentation the bureaus must delete it from your record.
There are laws that protect customers when it comes to credit. It is called the Fair Credit Reporting Act (FCRA). This act dictates when, who, and what can appear on your credit report and your actions for when something doesn't seem right.
It is good to pull your credit report yourself every 6 months or so. This allows you to ensure that there is nothing that has appeared on your report that shouldn't be there. As soon as you spot something that is question, dispute it with your credit bureau by writing a certified letter to them, either providing that you are right or questioning the item. They have 30 days to prove or remove the item from your credit report. Make sure you send that letter certified, so when 30 days are up you can provide them proof that they have received the letter.
Minor adjustments to open accounts will reflect a change in your score. Some adjustments such as increasing your credit limit, paying off collections, opening or closing an account or simply paying a little extra on monthly will change your score.
Paying your bills on time is one of the quickest, best and most efficient ways to increase your credit scores. Your credit payment history accounts for approximately 35% of your credit score. This is the single largest determining factor of your credit score and should not be taken lightly.
Once you get above a 700 score, you should try to have all balances below 15% of your available credit (less than 15% utilization) for the tradeline to be a positive factor.
Once you get above a 760, you should keep all revolving balance (credit card balances) below 10% of your credit limit in order for the tradelines to remain a positive factor on your scores.
