Here are some general ways to improve your credit scores:Pay your bills on time.Delinquent payments and collections can really hurt your score.Keep balances low on credit cards.High debt levels can hurt your score.Pay off debt rather than moving it between credit cards.The most effective way to improve your score in this area is to pay down your revolving credit.Apply for and open new credit accounts only when you need them.Check your credit report regularly for accuracyand contact the creditor and credit reporting agency to correct any errors.If you have missed payments, get current and stay current.The longer you pay your bills on time, the better your score. ...read more

R1: This is a revolving credit that always been paid on time. R2: A revolving credit with a 30 days late payment. R3: A revolving credit with a 60 days late payment. R4: A revolving credit with a 90 days late payment. You may also find credit accounts gone to collection agencies showing R4 rating. At that stage, chances are that the company sold your account to a collection agency below its actual value (what you owe). R5,R6,R7,R8: It is an aggravation of a R4. We rarely see them on the credit report. It usually jumps from R4 to R9. R9: This is the worst credit rate an individual can have. This means that the account has been written off or closed by the grantor. However, the outstanding amount is still showing on the credit bureau. It is important to note that the outstanding amount doesn’t matter. It is as bad to be late on a $20 dollar phone bill than a $200,000 mortgage. Other Terms: I / R: Each credit account will show the mention “I” or “R” along with a number. This is to determine if it’s a revolving account or if it’s paid by installments. Revolving accounts are such as credit cards and lines of credit (pre-authorized limit) and installments are made on regular mortgages and persona loans. I / J: Each credit account will also mention if they are Individual or Joint. Beacon Score, Empirica Score and Fico Score: These numbers represent a global appreciation of your credit behaviour. This topic will be discussed further in another article. ...read more

A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. Each score is based on the information then in your credit report.   Five Parts to Your FICO Credit Scores As a rule, credit scores analyze the credit-related information on your credit report. How they do this varies. Since FICO scores are frequently used, here is how these scores assess what is on your credit report. 1. Your payment history – about 35% of a FICO score Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. But a solid record of on-time payments helps your score. 2. How much you owe – about 30% of a FICO score FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be. 3. Length of your credit history – about 15% of a FICO score A longer credit history will increase your score. However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management. 4. New credit – about 10% of a FICO score If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score. 5. Other factors – about 10% of a FICO scoreSeveral minor factors also can influence your score. For example, having a mix of credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores. ...read more