It seems that almost everybody has had to contend with a low credit score at some time or another and right now it is more frequent than ever due to the downturn in the economy. You can have a great credit score and miss just one monthly payment and your credit score can plummet as much as 100 points. Most people don’t have any clue how credit scores are measured or how they can increase them.

You will find a combination of different things that make up your credit score. It is crucial to make your payments on time of course, but there are also other crucial considerations. One big determination is how much credit you have accessible compared to how much credit you have used. If your lines of credit or credit cards are maxed out at the limit, you are thought to be a bad risk.

In order to improve your credit scores you need to make sure that you use no more than 30% of the credit limit you have available. You can do this by increasing your limits, paying down your balance or not going beyond the 30% in the first place. You are thought to be a better risk if you have a extended credit limit but you are not using it.

Long-term credit is given more consideration 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 go over 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.

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

The credit bureaus and the creditors are given 30 to 45 days to prove the accuracy of their reporting but the good news is that it is estimated that as many as 40% of all disputes are not confirmed within the grace period. You can use this fact you your advantage as you repair your credit.

When you send a credit report dispute be vigilant about keeping detailed records. Send all letter by certified mail and have a paper trail complete with dates. List only one dispute per letter and send separate correspondence for every problem.

It may take time and consistency to repair your credit report but you can do it. It is your legal right to be able to know and control the information on your credit report and you need to use it to your advantage.

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