Many people do not think about their credit until they want to use their credit. However, it is important to be actively working on your credit. There are a lot of misconceptions about credit, but it is basically how a creditor looks at you. They want to know if you are a risk to lend money to. The credit bureaus have come up with an algorithm that takes into account your history with paying bills. This algorithm gives you a credit score and the higher your score the less of a risk that you are. However, if your score is low then you are a risk to lenders. There are a few different things that you can do that will help improve your credit score.

Payment History 

One of the biggest factors that goes into calculating your credit score is your payment history. The lender is going to want to know if you are late on your payments, if you have ever had a collection or anything like this. A creditor wants to know your payment history because there is a very good chance that you are going to have the same habits now as you did before. So, in order to improve your credit score, you need to make sure that you are on time with all of your payments. Even one missed or late payment can have a huge impact on your score. 


Do not go to the bank or a lender and just have them check your credit score. They are going to have to do this anyway when you are looking to use your credit. Every single time that a creditor checks your credit it is called a creditor inquiry, and it can affect your score up to 5 points. So, if you have multiple it can really pound your credit. However, you are allowed to check your credit in order to know what your credit is. If you are checking your credit, but not looking to borrow money then it is considered a soft inquiry and does not hurt your credit. 


There are companies that actually specialize in helping you with your credit. There are things on your credit report that may be inaccurate or misleading to a lender. If there is anything that is inaccurate then by law it can be removed from your credit report. Credit repair companies can leverage very specific laws force creditors and credit bureaus to remove inaccurate items. 

For more information, contact companies like Fresh Start Credit Repair.