Tips to Improve Credit Scores

Although credit scoring models differ, certain credit details are almost always considered when assessing a person's credit history. The list below contains some of these details, and every effort should be made to improve each aspect so that you can raise credit scores.

1) Timely bill payment

2) Past credit repayment

3) Steady employment

4) History of charge backs, bankruptcies and liens

5) Outstanding debts

6) Equity

7) Type and number of credit/bank accounts

8) Quantity of recent credit applications

Being denied credit

The Equal Credit Opportunity Act obligates a creditor to inform a person of the specific reason credit has been denied. A person has the right to request this information for a period of 60 days after denial of credit. It is incumbent on the creditor to be specific.

If the denial of credit is the result of any detail on your credit report, the creditor is obligated to provide you with the name and address of the credit reporting agency that supplied the information. You can then contact the credit reporting agency for information about the details on your credit report. Although the credit reporting agency can tell you what's in your credit report, then cannot tell you the reasons why any creditor denied your application for credit.

If you've been denied credit, make sure you know why. Filling out a free online credit evaluation may be your first step. Request your free annual credit reports so that you know what your potential creditors see on your credit history.

Once you know what details have negatively impacted your score, you can begin to take the necessary steps required to improve your credit score.

The Consumer Federation of America offers information and articles about credit scores. Read through the FTC's information about credit scoring.