Low credit scores are fairly common at this time and the downturn in the economy has just made it worse. You can have an excellent credit score and miss just one payment and your score can dip as much as 100 points or more. One concern is that most people do not have any idea about how credit scores are determined, how they can drop and how to improve on them.

People’s credit reports are based upon a composite of many different considerations. Of course, it is partly if you make your payments in a prompt manner but there are other things too. One of the most critical things that the credit bureaus look for is the difference between how much credit you have accessible and how much you are using. If your credit cards and credit lines are maxed out at the limit your score is substantially diminished.

If you wish to improve your credit scores make sure that you are only using 30% or less of any available credit lines, especially credit cards. If you have a higher credit limit yet you are using very little of it you are considered to be a lower risk.

Long-term credit is given more weight than short-term credit. If you have an older credit card that you haven’t used much, begin using it but make sure that you do not exceed the 30% rule and of course, be diligent in making your payments. It is always wise to carry a zero balance on a credit card if that is possible for you.

Ensure that it is necessary you know that you have the legal right to dispute any negative information found on your credit score. The Fair Credit Reporting Act was enacted to protect consumers from erroneous information on their credit. When you file a dispute the bureaus and the creditors must prove the accuracy of the information within a short period of time. If they cannot or do not prove the validity within the allotted time period then the information must be deleted from the credit report.

It’s estimated that as many as 40% of all disputes are not verified within the allotted time period of 30 to 45 days. This gives a definite advantage to you as a consumer and you can use this to your advantage as you try to repair your credit.

As you begin disputing the negative information in your reports make sure that you keep accurate and detailed records. Send all communication via certified mail and make sure you have accurate dates. Also make sure you send a separate letter for each dispute.

It may take time and patience to repair your credit history but you can do it. It’s your legal right to be able to know and control the information on your credit file and you have to use it to your benefit.

Outstanding credit repair guidelines for your family including fix your credit score, your states debt collection statute of limitations list and much more info at 724credit.com.

Tags: banking, blogging, business, Credit, Credit Cards, credit repair, debt, family

This entry was posted on Monday, April 12th, 2010 at 11:13 pm and is filed under blogging. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.