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Six Important Steps to Take When Trying To Improve Your Credit Score

Six Important Steps to Take When Trying To Improve Your Credit Score

If you have recently been turned down for a loan, or for a new credit card, you may need to fix your credit.  

A denial of credit is often the result of a bad credit report, which can happen in two circumstances.

Maybe you managed your credit poorly, which has been reflected in your credit report. This is sometimes due to job loss, divorce, or large medical bills. Sometimes it is just bad habits.

The other circumstance is where your credit file has some errors that hurt your credit score.

In either situation, it is vital that you undertake credit repair as soon as possible.

Here are six important steps to take to repair your own credit.

  • Request a copy of your credit report from any one of the 3 credit bureaus. If this is your first request of the year, you will be given the report for free.

A lot of people make the mistake of using popular online services that are not always reporting accurate information.

The best way to get a clear understanding of your credit is to order three separate credit reports (one from each major agency) from annualcreditreport.com

  • Once you have your report, examine it closely. You have to study all the entries and mark all those which are incorrect and which are damaging your credit worthiness.

Make sure everything is reporting accurately. This even includes credit limits as creditors often fail to update increases in lines of credit. Watch out for evidence of re-aging. Late pays only really make a difference if they are less than two years old.

  • After you have determined the wrong entries, you have to contact the credit reporting agencies and tell them to delete the erroneous entries from your report.

Be sure you provide your full address, social security number, copy of driver’s license, social security card and a utility bill (to prove where you live). These items will help the agency verify that you are who you say you are.

Tell the credit reporting agency exactly what you are disputing, why it is wrong, and any evidence in support of your claim. Be specific. You don’t have to cite any laws.

  • Ensure that all your correspondence with the credit companies and agencies is through registered mail.

A lot of people don’t know that you might waive rights if you try to improve your credit through

This way, you have proof of the timing of the attempts to correct that report.

This could help you later on if you bring a legal claim or if any deleted entry is re-inserted in your report anytime in the future. If you are not familiar with this read about re-aging claims here.

  • Within 30 days, some action should have been taken regarding the wrong items on your report.

If the credit bureaus determine that the entries were in fact wrong, they will remove it from your report.

Most of the time, but not always, this will improve your score.

  • Within 30 days, some action should have been taken regarding the wrong items on your report.

You should get a report back within about 30-45 days. Review that report to see if any challenged items were removed.

For items not removed repeat this process. If possible, try and give every possible piece of information so you can show a court, if necessary, that you did everything to attempt to educate the credit repair agencies.

If you do fix your report, congratulations. Try and make payments on time and limit your use of credit when possible.

Following these steps can help you recover from a bad situation or bad habits and get that house or car you want.

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