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, a consumer must know the players in the field of credit. There are three major credit reporting bureaus that each have a file pertaining to you. These files are constructed over time by compiling the information that credit providers give the bureaus. Therefore, each time you obtain credit, the report of it goes into your file and is updated over time with a record of your repayment of the debt.
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.
As the scores can differ somewhat, the next step is applying to check your credit report. The information here is vital, it can be though of as your financial health record. There are many offers on the internet that can be used to check both your credit report and your credit score.
After you have gotten your credit report and score, look carefully at the information reported by your creditors. It is important to be sure that all creditors reporting into your file are actually your accounts. If there are creditors on your report that you did not borrow from, your score can be improved simply by having these entries removed from your report.
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
Each credit bureau will individually look into errors. Sometimes you will need to communicate with the bureaus more than once to get things resolved, so it is important to keep a file of letters and responses. As you remove the incorrect late payments or other inaccuracies, your score can improve dramatically in a short time.
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. - 16036
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, a consumer must know the players in the field of credit. There are three major credit reporting bureaus that each have a file pertaining to you. These files are constructed over time by compiling the information that credit providers give the bureaus. Therefore, each time you obtain credit, the report of it goes into your file and is updated over time with a record of your repayment of the debt.
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.
As the scores can differ somewhat, the next step is applying to check your credit report. The information here is vital, it can be though of as your financial health record. There are many offers on the internet that can be used to check both your credit report and your credit score.
After you have gotten your credit report and score, look carefully at the information reported by your creditors. It is important to be sure that all creditors reporting into your file are actually your accounts. If there are creditors on your report that you did not borrow from, your score can be improved simply by having these entries removed from your report.
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
Each credit bureau will individually look into errors. Sometimes you will need to communicate with the bureaus more than once to get things resolved, so it is important to keep a file of letters and responses. As you remove the incorrect late payments or other inaccuracies, your score can improve dramatically in a short time.
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. - 16036
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