When you have your credit report and your credit score, you are able to know your true situation and where the majority of your issues lie. For those who have a poor score, make an attempt to see in your credit report what is causing the problem:

-Do you have a lot of financial obligations?
-Too many past due bills?
-Have you recently experienced a serious financial upset such as a personal bankruptcy?
-Have you simply not had credit a sufficient amount of time to create favorable credit?
-Have you defaulted on a loan, failed to pay taxes, or recently been reported to a collection agency?

The problems that bring about your credit problems should direct the way you decide to increase your credit score.

When you request professional credit counseling or credit help, counselors will normally work with you to aid you to create a customized approach that specifically addresses your credit challenges and financial history.

When generating your action plan, understand where the majority of your credit rating is coming from:

1) Your credit history (accounts for more than a third of your credit score many times). Whether you have been a good credit risk in the past is considered the best indication of how you will react to debt later on. Because of this, late payment, loan defaults, unpaid taxes, bankruptcies, and other unmet debt obligations will count against you the most. You can’t do much with your financial past now, but beginning to pay your bills by the due date - beginning right now - may help improve your credit score in the future.

2) Your present financial obligations (makes up nearly a third of your credit score in many cases). When you’ve got lots of existing debt, it may suggest you are stretching yourself financially thin and so you might have problems paying back debts in the future. If you have a great deal of money owing right now - and most especially when you have borrowed a large amount recently - this fact will bring down your credit rating. You an improve your credit rating by decreasing your debt as much as you are able.

3) The span of time you’ve had credit (accounts for nearly 15% of your credit score many times). If you have not possessed credit accounts for very long, you may not have enough of a history to let lenders determine whether you happen to be a good credit risk. Not having had credit for a while influences your credit rating. You can counter this by continuing to keep your accounts open in lieu of closing them as you pay them off.

4) The kinds of credit you have (accounts for about one tenth of your credit score, in most cases). Creditors prefer to see a mix of financial obligations that you control effectively. Having bills that you pay in addition to one or two varieties of loans can actually improve your credit history. Maintaining at least one credit card that you manage well can also help your credit score.

In reality, it is possible to only estimate how much a specific area of your credit report impacts your credit score. Nonetheless, keeping these key areas in mind and ensuring that each is addressed in your customized strategy will go a long way in ensuring that your tailored credit repair plan is comprehensive enough to improve your credit history successfully.

Your quest to increase your credit score begins with an understanding of how it is determined. Once you have this information, it is much easier to take effective measures increase credit score quickly and efficiently.