Credit Fix-Up Guide How exactly can one improve their credit? Is it possible to do it on my own? The answer is yes and Badcredit.pro is here to tell you how.

What exactly is a credit score? A credit score is a score, between 300 and 850, that represents how likely you are to pay your bills, how worthy of credit you are. Your credit score is based on information from your credit reports, complied by three major credit reporting agencies. These agencies are Equifax, Experian and TransUnion. When you go to get a loan or take out a credit card, lenders look at your credit score to decide whether to issue you the loan, what interest rate to charge and how much of a potential risk you are. Your credit report is derived from five different factors, ranked by relevance:

1. Timely Bill Paying- The largest contributing statistic to your credit score is how often you pay your bills on time. If you make a lot of late payments your credit rating will take a big hit. If there is one emphasis of keeping a good credit score it is to pay you bills on time.
2. Debt Ratio- Your debt ratio is how much of your monthly income goes to debt. If you are maxing out your credit cards and paying tons of bills you have a high debt ratio. The higher your debt ratio the lower your credit score is going to be.
3. Credit History- A good credit history is also an important aspect of credit rating. If you have a history of paying bills on time and have had no problems paying off your various debts then your rating will be higher. If you have no credit history, maybe you have never had a credit card or taken out a loan, you will not be approved for any type of loan or credit. This is usually only the case for younger people who need their parents to be cosigners.
4. Control Yourself- Yes, you do want to have good credit history. Do not go overboard, however. Do not apply for some many credit cards you lose track of what is going on. This shows credit companies that you have a lot of debt and can not necessarily pay them off.
5. Variety, Variety- A good variety of credit cards and loans can do wonders for your credit score. Too many loans and credit cards will reflect badly on your credit score.  If you have a good variety now and have shown the ability to pay off the bills in time, your credit score will go up.

If you follow these five simple steps you should have a pretty good credit rating for the rest of your life. You can avoid paying high interest rates and avoid getting denied for loans.  If you currently have a bad credit sore you can still follow these simple steps and it will improve your credit score.

The Fair and Accurate Credit Transaction Act

Back in the day your credit rating would take a hit, albeit a small one, if you accessed your credit report. This hardly seemed fair and it stopped people with bad credit from checking their score because they did not want it to go down anymore. The Fair and Accurate Credit Transactions Act (FACTA) of 2003 allows you to receive one free credit report, it will not affect your credit score, every 12 months. There is no excuse for you to not know your credit score anymore.

Most Common Credit Mistakes

Only paying the minimum balance on your credit card bill keeps your balance to high and can lower your credit score.

Not paying your bills on time can cause interest rates to rise, costly fees to incur and lower your overall credit score.

Not checking your credit report frequently can lead to unknown damaged credit ratings and is the most common consumer mistake.

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