Your credit score is important, and you should obviously know that by now.  Without this simple little number, you’re going to find that’s its going to be awfully hard to get a car loan, a home mortgage, and even a personal loan.  Where would we be if no one could borrow money?  Well, I suppose some of us would be better off, but not the majority of us.

What happens if you have a bad credit score today, or you’re looking to improve the credit score you already have?  There are a few simple steps that you can take in order to improve your rating in the next couple months.

Get a copy of your credit report – This is essential, and without a report, you’re not going to be able to know what’s on it, as well as your score.  Try out websites like SpendonLife.com, as well as a few others out there that will give you your report, as well as a score.  Once you receive it, print it out, and look it over.

Does everything look right?  Take a few minutes, sit down, and glance over your report.  If you spot any errors on your report, you’ll want to instantly highlight them, so that you can come back to them.  If you don’t see any errors, that’s great, because that’s going to save you a world of calling, etc.

What if there are errors? If you do spot an error by chance, you’ll want to call up the lender, or issuer that has the error.  For example, if you had a credit card through Chase Bank, and they had stated that you were late on a couple payments, and you never were, you will want to call them up, and explain.  If you can prove your point, you will most likely be able to get it resolved.

If you know you’re not at fault, and the company won’t budge, you will want to contact one of the major three credit bureaus, and let them know what’s going on.  Once again, if you can prove that you’re not at fault, they can help you remove it.  Remember that when you remove these errors, you’re going to be able to higher your score based on what the issue was.

How can I improve my credit rating?

Improving your credit score takes some time, and as long as you have patience, you can see your score rise.  Here are a few tips that you can use, and follow in order to raise that credit score of yours.

• Pay your bills on time, even if you have to pay the minimum. The key here is to pay your bills all the time.
• Clear any debt you have. If you have a $5,000 credit card bill, get that paid down to $0, so that your debt to income ratio isn’t that high.
• Try and avoid opening up new accounts. You don’t want to constantly open up new finance accounts.  This is going to open you up to more debt, and lenders will be more hesitant to lend to you.
• Try not to rack up a balance on your credit cards. A great habit to get into is to simply use your credit card, and pay it off in full.  Not only will you not have to pay interest rates, your debt will be down.
• Keep your old balances opened. The older your accounts are, the better it is for you.  Even if you don’t use these accounts, try, and keep them open for a period of time.

The main goal here is to basically pay down your debts.  As long as you’re debt free, and you’re not careless with your credit card, you will soon see your credit score rise month, after month.