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by: JayAnderson
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Getting credit approved seems to be getting tougher in these days of the credit crunch, so one of the things you need to implement regularly should be to raise your credit score. Most people do not even think about their credit score at all, but not doing anything about it, year after year, is clearly one of the worst things you can do.

This is especially true for mortgage loans. It was not all that long ago when you could get approved for a very attractive mortgage loan with zero problems. But increasing your credit score is also important for other types of credit that you probably have, like car loans, credit cards, bank loans, and more.

The reason it is important to have your credit score as high as possible is that almost all lenders for any kind of financial transaction will look at your credit score so they can make an informed decision as to how much of a credit risk you may represent to them when and if they approve your loan request. The rates, programs, and incentives they will offer you is very dependent on how much of a risk they think you represent to them, and that risk factor is determined for the most part by your credit score.

As an example, consider a typical mortgage loan, which probably amounts to a six digit figure for the majority of mortgage holders these days. The difference of about 20 points in your credit score can make the difference between getting a rate that might be as little as a tenth of a percentage on the mortgage loan. So what you say? Over the life of the loan, those tenths of a percent can add up to more than $10,000 which is money that could be in your pocket if you had taken the time to raise your credit score before applying for the loan.

With regard to your credit score, there are some things listed on your credit report that you have zero control over, such as the amount of your income. You also have no control over the total amount of your outstanding debt, but here is where it gets dicey. The actual amount of your total outstanding debt may not be correct on your credit report.

To further compound this problem, the status of each of your debts may not be accurately listed either. Studies have shown that the majority of people have errors on their credit report. The multitude of errors run the full range of having accounts shown that do not belong to you, which happens sometimes for people with common names. They may have an account showing as being past due when the truth is that it is completely up to date. It could have your current balance listed as $7000 when in reality your balance on that account is $70. All of these errors and more combine into producing a credit score for you that is lower than it should really be if things were reported accurately. And these errors do not self-correct either.

Your first step in raising your credit score is to get a copy of your credit report and credit score from each of the three major credit reporting agencies. Examine them with a fine tooth comb and then start an official dispute with the credit bureau for anything that is not completely accurate. The credit bureau has an obligation, dictated by law, to either verify the information as correct, or correct it, or sometimes even remove it.

Take steps so that you do not become a victim of your own credit score. Invest the time to raise your credit score and make it a regular part of your standard financial responsibility tasks. The money you will save will serve a much better purpose in your own wallet than it will being paid out in loan payments.

About the Author

For more insights and additional information about how you can Raise Credit Score as well a getting free copies of your credit reports, please visit our web site at http://www.credit-help-center.com

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