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Debt recovery is possible using credit history information

Washington, D.C., residents who are looking to improve their credit scores may not be entirely sure where to start. After debt recovery, boosting your credit score is incredibly important, but the strategies to do so are not necessarily intuitively obvious. Instead of just guessing - or going with your gut - consider these techniques to rebuild your credit quickly and reliably.

The most important component of improving your credit report is knowing your credit score and credit history. That information can be obtained through any of the three major credit reporting agencies, who are required to issue a free report annually to every American. Those who find errors in their credit report may be able to remedy the situation without having to take extra inconvenient steps to reduce their consumer debt. A significant number of Americans have errors on their report, so checking your score is critical for success.

Next, be sure to pay your bills on time. The fact remains that your payment history is the most critical factor in determining your FICO score. Consistently making payments on time will be guaranteed to boost your score, no matter what your consumer debt looked like in the past. Your score can be harmed by late payments that go unpaid for a longer period; for example, a payment that is 60 days late holds more weight than one that is just 30 days overdue. Even if overdue payments are still listed on your credit report, your score could rise because of improved responsibility.

Finally, experts say that lowering your debt-to-credit ratio is a great way to improve your score. Try to lower your credit utilization to between 1 and 20 percent. That means that your credit cards should carry no more than 20 percent of their maximum balances. Lower credit use will result in rebuilt credit.

Individuals who have declared bankruptcy may still have lots of questions about getting back on their feet after filing. Qualified financial planners and attorneys can serve as excellent resources for these borrowers, providing them with the information they need to pursue a bright financial future.

Source: Huffington Post, "3 Legitimate Ways to Improve Your Credit Fast" Rob Berger, Jan. 13, 2014

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