Improve Your Credit Score By Checking Your Credit Report
Never before has your credit score been so important to decisions that are being made about you. When you apply for a credit card, car loan, or another type of credit, this will trigger a credit check and generate multiple credit reports. These are used by a lender to make decisions about whether or not to lend to you, how much, and at what rate. Credit scores are now even used by potential employers, utility and service providers, and other companies.
That said, improving your credit score is of vital importance. The major credit reporting bureaus use different methods to assemble credit scores, but these methods are similar enough that the same steps will be effective to improve all of your credit scores.
First of all, you need to know who has this information. There are three major credit reporting bureaus, Experian, TransUnion and Equifax. Each of these companies has a file for you and every other person who has consumer credit. These files are assembled over time by compiling the information that credit providers give the credit bureaus. It works like this: Each time you obtain credit it goes into your file, then the lender gives the bureaus a record of the repayment of that debt.
For example, you have a car loan that requires you to make a payment on the 5th of each month for 36 months. Over the first year, lets say that you make two late payments on the 20th of the month, while the rest are considered on time. The lender sends a report of this repayment activity to each credit reporting bureau. Each bureau uses their own proprietary formula to compute your score based on the information reported by creditors to them.
The next step is applying to check your credit report. This is vital information a" think of it as your financial health record. There are many offers available on the internet through which you can apply to check your credit report and your credit score.
Once you have a credit report and a credit score, take a look at the information reported by your creditors. Make sure that the creditors that are reporting into your credit file are actually your accounts. If there are creditors listed on your report that you did not borrow from, you can improve your credit score by having these entries removed from your account.
Finally, review all payment histories to be sure that they are accurate. If a creditor has reported incorrect late payments, or does not show payments that you make, correcting these can greatly improve your credit score. Your credit score report will contain the addresses of the credit reporting bureaus. Just follow the instructions to write to the bureaus and identify errors in your report
The credit bureaus will individually investigate each error. Since it can often take several letters back and forth, keep a file of your letters and their responses. You can dramatically improve your credit score in a short time by removing inaccurate information and records of late payments.
Apply as soon as possible to check your credit report, then continue to monitor it at least annually. The more you are familiar with your financial health record, the better equipped you will be to improve your credit score. Credit scoring is so widely used today that improving you score will help you in a variety of ways.
That said, improving your credit score is of vital importance. The major credit reporting bureaus use different methods to assemble credit scores, but these methods are similar enough that the same steps will be effective to improve all of your credit scores.
First of all, you need to know who has this information. There are three major credit reporting bureaus, Experian, TransUnion and Equifax. Each of these companies has a file for you and every other person who has consumer credit. These files are assembled over time by compiling the information that credit providers give the credit bureaus. It works like this: Each time you obtain credit it goes into your file, then the lender gives the bureaus a record of the repayment of that debt.
For example, you have a car loan that requires you to make a payment on the 5th of each month for 36 months. Over the first year, lets say that you make two late payments on the 20th of the month, while the rest are considered on time. The lender sends a report of this repayment activity to each credit reporting bureau. Each bureau uses their own proprietary formula to compute your score based on the information reported by creditors to them.
The next step is applying to check your credit report. This is vital information a" think of it as your financial health record. There are many offers available on the internet through which you can apply to check your credit report and your credit score.
Once you have a credit report and a credit score, take a look at the information reported by your creditors. Make sure that the creditors that are reporting into your credit file are actually your accounts. If there are creditors listed on your report that you did not borrow from, you can improve your credit score by having these entries removed from your account.
Finally, review all payment histories to be sure that they are accurate. If a creditor has reported incorrect late payments, or does not show payments that you make, correcting these can greatly improve your credit score. Your credit score report will contain the addresses of the credit reporting bureaus. Just follow the instructions to write to the bureaus and identify errors in your report
The credit bureaus will individually investigate each error. Since it can often take several letters back and forth, keep a file of your letters and their responses. You can dramatically improve your credit score in a short time by removing inaccurate information and records of late payments.
Apply as soon as possible to check your credit report, then continue to monitor it at least annually. The more you are familiar with your financial health record, the better equipped you will be to improve your credit score. Credit scoring is so widely used today that improving you score will help you in a variety of ways.
About the Author:
To find out exactly how you can get your annual credit report visit my credit report website.
posted by Credit Counseling at
9:22 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home