How to Repair Your Credit Score

There are millions of Americans that need to learn effective ways to repair their credit scores. Your credit score has a direct and constant affect on your lifestyle and well-being. When your credit score drops too low, it can be a true nightmare. Let's learn some techniques to repair your credit score!

Technique #1: Get yourself educated about your credit score.

Many people erroneously assume that their credit score is as it should be. They feel that there is no need to keep checking it. That's because they don't understand that fluctuation is a very natural happening in the credit score realm. Not only can your credit score change rapidly, it is known that as much as 79% of all credit reports contain at least a small amount of bogus information. If you do not dispute this information, it will keep reappearing every time that a potential lender checks your credit. You could be being held down and not even know why! Request the free copies that you are entitled to receive from Experian, Equifax and TransUnion.

Technique #2: Dispute negative items that show up on your credit reports.

If you desire to repair your credit score, then you must do this. It is the most powerful technique to make rapid improvements to your score. The credit bureaus must verify the information or remove the item from your credit report. If the verification does not happen within 30 to 45 days, it has to be removed immediately. That's your right as a consumer.

Also, there are statutes of limitations for all debts (except student loans and child support). After a given time period (usually 7 years) negative items are supposed to fall off of your credit report automatically and some just don't. Exercise your right to have these negative items removed or continue to suffer.

Technique #3: Make your payments on time - every time.

Late or missed payments are the single most powerful factor in determining your credit score. Do not bite off more than can chew it comes to extending yourself credit. If you do, you may find yourself without the ability to obtain credit when you really need it.

Technique #4: Pay down or pay off your credit card balances.

This is the second largest factor of credit scoring. If you want to repair your credit score, then you need to pay your cards down to no more than 30% of their maximum values. The algorithms that dictate your credit score weigh the difference between the amounts of credit that you could use to the amount that you do use. The larger the difference, the more you repair your credit score. Get it?

You can repair your credit score with intention and a little discipline. You don't have to continue to be held back in life. Repairing your credit score is as simple as tearing it down - just a little different twist involved!

Chane Steiner is a credit repair expert and founder of AAACreditGuide.com - a site where you can learn how to deal with collection agencies and how to repair credit score.