Resolve Debt

If you are looking for how to fix your credit score, then there are a few things that you first have to understand about credit scores in general, to completely understand how to fix credit score numbers, and raise your overall credit rating dramatically.  There is a lot of weight involved with your credit score these days, especially with the economy in the position that it is in.  More and more often, people are finding out, that because they let a few payments lapse, that they are having incredibly tough times trying to get anything financed.  Banks just aren’t giving out money now, like they were 2 or 3 years ago.

So how can I fix my credit score?  The few key areas involved in a FICO score are how you make payments, how much you have borrowed compared to your overall income, and the total amount of revolving debt that you have.  These three things alone account for more of your FICO than anything else, and if you want to know how to fix your credit score, then you have to look at these three key areas.

When your FICO score is determined, one of the first things that is looked at to make up the overall score is how well you make your payments.  If you have had payments lapse, or just completely defaulted on borrowed money, you are going to have penalties put onto your score instantly.  This is the first thing lenders see when they pull up your score, and if it isn’t the first thing on the report, it is the first thing that they are looking for.  As long as you have paid your debts on time, and make your payments the way you are supposed to, they are going to look at two other factors to determine your eligibility.

The next two things that lenders are looking for, are how much total debt you have accumulated, along with how much income you bring in each month.  They are going to factor each into one another, and come up with a number that is called your debt to income ratio.  If this ratio is too high, or you have too much debt compared to your income level, then you are probably going to get denied.  Fix your credit score now, by making payments when they are due, and getting your debt to income ratio around 35% total.