Why You Must Raise Your Credit Score
Jay Anderson
>From a financial perspective, your entire financial life is dependent on your credit history, which is used to calculate your credit score. When your credit score is too low, you will want to raise your credit score because it is going to cause you problems in a lot of areas. There could be a wide variety of reasons that your credit score is lower than you would like to see.
The most important thing you can do with credit is paying your bills on time. If you have made a lot of late payments, filed bankruptcy, have judgments against you, or have defaulted on payments, your credit history has blemishes and your credit score is suffering. In other words, you are paying more than you need to for your mistakes and now is the time to get those mistakes corrected.
For the process of increasing your credit score, your first step would be to get copies of your credit reports from each of the three major credit reporting agencies and go over them with a fine tooth comb. Federal law says that you can get a free copy of your report once a year, so feel free to take advantage of this. What you will likely discover is that even though all the information on your report may be correct, chances are very high that you will find one or more errors. If you do not get these errors corrected, they will never be corrected since you are the only one who can get them fixed.
Errors are introduced into your credit report in a variety of ways. Account numbers get transposed, there is human error and clerical error, and also computer error. If you see an account you do not recognize, this may be the sign of identity theft. Having all these errors on your credit report will cause your credit score to be calculated lower. Endeavor to get those errors corrected, which is not all that difficult.
But even if the process of getting these errors corrected was tedious, it is still something that you need to undertake. It is ridiculous that your credit score is lower than it should be, largely due to erroneous information being reported, yet this exact scenario is occurring with hundreds of thousands of Americans right now. You need to get the errors corrected so you can move forward with your financial life.
After you have identified the errors, you now have to find the proof. The proof you need depends on the type of error. For example, if there is an error saying something is not paid off and you know that it is, you will need either cancelled checks or statements. Verification can usually be done via the original creditor.
To dispute an item, you should send a letter to the credit bureau that is reporting the error, a separate letter to each one. Some people even say to send only one dispute per letter, so if you have five disputes, you should send five letters, but I don't think that is necessary or saves any time. Be clear about what is being reported incorrectly and how it should be reported. Retain a copy of what you send them and follow up. They have 30 days to either verify the information or remove it.
When you raise your credit score, you will find that things get so much better. Now you may be able to receive a loan, a credit card, or other forms of credit. You will also find that your interest rates are lowered and it becomes easier to rent a home or buy a home. There are many benefits it is time to start raising your credit score today.
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