Apply To Check Your Credit Report And Improve Your Credit Score
Your credit score has become an important tool that is used to make decisions about you. When you apply for credit cards or a car loan, this will trigger a credit check and generate multiple credit scores. Based upon these scores, lenders make decisions about whether or not to lend to you, how much to lend, and at what interest rate. Credit scores are also used by potential employers, utility and service providers, along with other companies you do business with.
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 the players. There are three major credit reporting bureaus. Each of these has a file about you. Their files are built up over time by assembling the information that credit providers give the credit bureaus. Each time you obtain credit, it goes into your file; and then the credit provider gives the credit bureaus a record of your repayment of that credit.
A good example would be a car loan that must be repaid on the 5th of each month for 36 months. Over the first year, letas say that you make two payments on the 20th, while the rest were received on or before the 5th. The lender sends a report of your loan activity to each credit bureau. Each of these bureaus in turn uses a formula to compute a credit score for you, based upon that reported information.
The next and most important step is applying to see your credit report. This information is vital, think of it as your financial health record. There are many companies on the internet that allow you to access your credit report and credit score online.
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.
Next, review the payment histories on your report for accuracy. If creditors are reporting incorrect late payments or not crediting payments that you have made, your can further improve your score by correcting this information. The credit score report will provide the addresses of the three credit bureaus. Simply follow the instructions to contact them 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 to check your credit report as soon as possible, and then at least annually. The more you know about your financial health record, the better able you will be to improve your credit score. Credit scoring is so commonly used today that improving your credit score will help you in many 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 the players. There are three major credit reporting bureaus. Each of these has a file about you. Their files are built up over time by assembling the information that credit providers give the credit bureaus. Each time you obtain credit, it goes into your file; and then the credit provider gives the credit bureaus a record of your repayment of that credit.
A good example would be a car loan that must be repaid on the 5th of each month for 36 months. Over the first year, letas say that you make two payments on the 20th, while the rest were received on or before the 5th. The lender sends a report of your loan activity to each credit bureau. Each of these bureaus in turn uses a formula to compute a credit score for you, based upon that reported information.
The next and most important step is applying to see your credit report. This information is vital, think of it as your financial health record. There are many companies on the internet that allow you to access your credit report and credit score online.
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.
Next, review the payment histories on your report for accuracy. If creditors are reporting incorrect late payments or not crediting payments that you have made, your can further improve your score by correcting this information. The credit score report will provide the addresses of the three credit bureaus. Simply follow the instructions to contact them 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 to check your credit report as soon as possible, and then at least annually. The more you know about your financial health record, the better able you will be to improve your credit score. Credit scoring is so commonly used today that improving your credit score will help you in many ways.
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To find out exactly how you can get your annual credit report visit my credit report website.
posted by Credit Counseling at
1:17 AM
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