How to Improve Your Credit Score Instantly

Have you ever applied for a loan and wondered if you received the interest rate you deserve? Your question is valid since it is very important to know how a lender determines the interest rates charged. Included in each credit report is the credit score, which lenders use to predict how a person will repay a future loan, or a credit card.

You can use the five factors that affect your credit score to improve yours and prepare for your financial future! Remember credit repair only improves 1 of the 5 categories. If your goal is to get and maintain an 800 credit score you will need to affect positive change in all 5 categories.

Payment history: More than a third of your credit score is determined by your recent payment history. Several recent late payments can be worse than bankruptcy that occurred several years ago.

Amounts you owe: Do you have credit available in emergencies? Credit agencies want to be sure that your balance is not very close to your limit. A balance of more than 35% of the limit of a credit card can affect your score negatively.

Duration of your Credit History: Demonstrating responsibility over the past few years helps raise your credit score. Never cancel a card you have had for several years.

Types of Credit Used: When ready, request the credit you need. There are two types. Mortgages, car loans and student loans are considered term loans (credits). To diversify your history a bit, you can also request a credit card, which is considered a revolving credit.

Many Applications: Your credit history will be investigated each time you request any form of credit. It is very important that you do not apply frequently, as these inquiries will lower your credit score.

Generally, your personal information or certain financial obligations do not affect your credit score. United States Law prohibits credit institutions from considering their race, color, origin, sex, religion, or marital status. At the same time, items declared as support for children / family or rental agreements are also not included when calculating your score. However, a lender can consider your age, place of residence, and your employment information (such as your salary) when processing your application.

Your credit score considers the positive and negative information in your report. If you work with the five factors described in this article, it could get your credit score up.

Practical Advice: Work on what you can control. Paying your bills on time and keeping your balances low are two important factors when calculating your credit score.

Dr Michael C. Grayson is an author, entrepreneur, consumer advocate, and a credit expert. He serves as the CEO of Credit and Debt Management Institute, Inc. Grayson has been invited to speak before Congress on access to capital for small businesses, written expert papers for two Presidents was Honorary Chairman of the Business Advisory Council under President Bush and is currently working with Mayor Richard Thomas to raise the aggregate credit scores of the entire city of Mt. Vernon, NY.

Dr. Grayson is credited for writing the algorithm for credit restoration. Currently, he is working on a software application that is based on his proprietary algorithm. This app will fix your credit instantly. Most apps only monitor your credit, this disruptive software will diagnose problems and then fix them. Grayson is offering a $1 million reward to anyone who beats his records and establishes themselves as the new world’s leading credit expert. He’s also received multiple awards, and often gives seminars highlighting the many ways by which people can improve their track record.