Having credit is a critical asset for any individual in today’s complex world. Unless you have a credit history, you will find it difficult to impossible to get any type of loan for a car, house or even get the opportunity for employment at most jobs.
Therefore, to take advantage of all of life’s opportunities, it is very important that you strive to achieve a high credit rating. If you have a good credit score you must do whatever you can to maintain it and if your score is less than stellar, you must find ways to improve your credit score.
TransUnion, Equifax and Experian are the top credit reporting agencies in the US. Getting a copy of each of your reports from the companies for free on an annual basis is the best ongoing way to improve your credit score. The Consumer Protection Law enables you to get annual copies for free from each of the three credit bureaus.
Once you obtain your credit reports, carefully go through them with a fine tooth comb looking for any incorrect or out dated information. When you do find errors, and a high percentage of people do, you need to contact the credit bureaus by letter notifying them of the specific data that is not correct and how that information should read.
The credit bureaus have the burden of correcting the flawed data on your credit report once you send them written notice of the errors. They will contact the creditors who supplied the incorrect data initially and demand that the disputed information be corrected. If the creditors do not respond within a reasonable period of time, generally 30-45 days, your credit report will be expunged of this data.
You will likely see an increase in your credit score within several months of cleaning up all three of your credit reports of the inaccurate information. You can then concentrate on maintaining your good credit rating by having a low debt to income ratio and by paying your bills on time each month.
If the balance on your credit cards is high relative to your income, even if you’re paying your monthly card payments on time, the credit card companies will deem you to be a higher risk customer. If you are considered a higher credit risk you will receive a lower credit score.
Improving your credit score and maintaining it, is up to you. Seven out of ten credit reports will have some type of error that is significant enough to impact your credit score in a negative manner. Your personal credit score is worth your time and effort to nurture and protect so it will benefit you for life.
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