How to Increase Credit Score - Four Strategies to Insure Success By Jason Rodriguez

Some experts say that the depressed housing market makes this an excellent time to purchase a house. You agree and decide to apply for a mortgage. However, your credit score is 649 and the lender requires a score of at least 650. What do you do? At this point, you ask, "How to increase credit score?" Here are five strategies you can employ to insure success.

First, you should be aware that your credit score is really three independent scores averaged together. Each of the three main credit reporting agencies maintain a credit score on you. Therefore, you will need to get your credit report and credit score from each of the three credit reporting agencies. Some creditors use only one of the three credit scores so you should inquire of the creditor which score it uses and focus on increasing that particular score.

Secondly, you need to review your credit reports very carefully for errors. Where negative information appears, you should file a dispute with the credit bureau and if the item is rightly yours, you will need to contact the creditor and work out a resolution of the matter.

Third, if you have credit cards, start paying them down to where they are less than half of your available credit limits. If you pay off some of the cards, do not close the account as doing so will reduce rather than raise your credit score. In addition, you should always pay more than the minimum amount due each month on your cards.

Fourth, avoid bankruptcy which will lower your score up to 200 points, according to some experts, and do not sign up with a debt settlement firm as this will also reduce your score. However, if you can work out settlements of your debt on your own, then be sure that you get in writing a promise from the creditor that your credit report will be changed to read "paid as agreed" rather than "settled" or similar language which indicates you paid less than you owed.

Don't let the fear of your debt or bad credit take over your life. Get the facts about credit scores and learn how to get control of your debt. To learn more about how to increase credit score visit us at http://creditscoreanswers.org now