Improving credit score - does the amount of the debt play into the

My credit score isn’t the greatest, and I was wondering - I’ve never borrowed any significant amount of money, and my score has never risen that high. Does the amount of the historical debt have anything to do with the scoring algorithm for your credit score?

Eg, does the equation that experian, transunion, and equifax use take into account not only the number of historical transactions they have on me in their system, but also the value of said transaction, eg, the size of the debt or the monthly payment?

Answer #1

I have a question here When I began this endever I was advized to try and clean my credit report if I could. I did try ,,and told the credit bureaus of 3 cards I had stopped using, “closed in 2001”” had still accured late and over the limit fees. Those creditors have this on my report, now as charge off or something like that. A bad thing. All the credit bureaus did for me was update my address and phone number…The opperators were rude when I did talk to any. And I printed out my free credit report from all 3 bureaus. 24 pages of one, 12 pages of another, and 28 of the third. I was running for paper stashes to keep up with it. They said I could pay a small fee and come back for 30 days to look at it. They forgot to tell me to gather up all the paper I would need if I chose to print it. Oh well. Oh yes if you click on the page I left up top , that is were all this rambling came from. lol Cathy Good Luck ,,,The Dude

Answer #2

This site answers all kinds of questions like that:

Answer #3

To start with, you shall need a copy of your credit report. If everything in the reports is good, then you can be rest assured that you will have a good credit score. Getting your credit reports is easy and pain free. Actually you are permitted one free copy of your credit report, every year. In order to get your copy of the report, just contact anyone or all the three national consumer credit reporting agencies as given below:

  1. Equifax: 1-800-525-6285,, P.O Box 740241, Atlanta, GA 30374-0241

  2. Experian: 1-888-EXPERIAN (397-3742),, P.O Box 9532, Allen, TX 75013

  3. TransUnion: 1-800-680-7289,, Fraud Victim Assistance Division, P.O Box 6790, Fullerton, CA 92834-6790

Get your free copy of your credit report by logging on to or call them on 1-877-322-8228. Please note that is the only website which is legally authorized by the credit rating program to provide you with your copy of credit report, free of cost.

Equipped with the score, it is now easier for you to work towards improving it. The thumb rule for having a good credit score is to pay all your bills regularly. When you pay your bills on time, you increase your credit rating for future. This is for sure, the easiest and most simple way to boosting your credit scores!

Answer #4

The short answer is yes. Experian, transunion, and Equifax do take into account how big a certain loan is. And if such a loan is relatively large, and you make consistent payments on that loan, you credit score will be increased.

Now in order to repair your credit:

Firstly, be prepared: your credit report may contain some surprises. Examine it thoroughly. It might show, for example, an open store credit card that you have not used in years or even a current account that is closed. It is also very possible that the report may contain errors.

In the first instance, close any open credit cards you no longer use.

In the case of errors, contact the reporting agency immediately to correct them. Although the agency must investigate and respond to your dispute within 30 days, the process of actually correcting the errors could take months. (This is another good reason to examine your credit reports on a regular basis - at least once a year.)

You should also Contact all three major credit reporting agencies.

Although you may have received your report from one agency — Experian®, for example — you want to make sure each agency corrects its information on you. Use the information below to order your credit report from the three major credit bureaus, then review it carefully and, if it contains discrepancies, take the necessary steps to update it for accuracy:

 •    Equifax: (800) 685-1111 or 
 •    Experian: (888) 397-3742 or 
 •    TransUnion: (800) 888-4213 or 

If you happen to be in the process of applying for a loan, report any errors you have found in your credit report immediately both to the reporting agency and to your prospective lender.

Handling derogatory information in your credit report

If your credit report reflects any flaws in your past history — such as a late payment on a loan or credit card — make notes of them. Be prepared to offer a reasonable explanation for these lapses when you wish to approach a lender.

If your debt situation has gotten out of control, you probably do not need a credit report to tell you that. Nevertheless, there are ways to remedy the situation - make your life more comfortable and improve the status of your next credit report. Here are some tips:

 •    Contact your creditors. Ask about affordable payment plans. Most creditors will be reasonable about helping to find a solution for you.
 •    Eliminate your high-interest credit cards. 
 •    Consolidate your debt. If you are a homeowner, you could take a long term loan through some institutions. 

Avoid “Credit Repair Company” fraud

According to the United States Federal Trade Commission, consumer debt in the United States is at an all-time high. This environment has encouraged unscrupulous businesses to present themselves as “Credit Repair” firms. For a fee, these institutions promise “quick fixes” which may be dangerous at best, and illegal at worst.

Often, all these “credit repair” companies offer in return for money is advice to file bankruptcy. Bankruptcy is considered to be the absolute last resort in resolving debt issues. Since it stays on a credit report for ten years, a bankruptcy is obviously not the route to take in repairing your credit.

Other companies promise to “clean your credit report” — for a fee, of course — enabling you to obtain a mortgage loan, personal loans, or even employment. The truth is they are unable to accomplish these promises. Often these companies will, after taking your money, simply vanish. Or, they may advise you to obtain an “Employee Identification Number” from the Internal Revenue Service (IRS) and use it to “create a new credit report” by using it instead of your social security number.

If you live in the U.S., be aware that making false statements on a credit application, misrepresenting a social security number, and obtaining an employee identification number from the IRS under false pretenses are all federal crimes.

Regardless where in the world you reside, remember that there are no “quick fixes” to repairing a credit report. It takes time, effort, and a plan to repay your debt.

So basically, what you got to do is:

Review your credit report on a regular basis for accuracy. Repair your credit by immediately reporting any errors to the three major credit reporting agencies, as well as to any lender you may be currently working with. If your debt seems out of control, contact your bank and they will help you take steps to eliminate high-interest obligations, arrange for affordable payment schedules, and investigate debt consolidation solutions. Be aware that significant errors on your credit report may indicate unauthorized use of your credit card, fraud, or even “identify theft.”

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