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Short Term Ways To Improve Your Credit Score That Are Lasting
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, it is extremely important to maintain a high credit rating so that you can take full advantage of life’s opportunities. You must always be looking for ways to improve your credit score, or, if you have a good credit score, continue to maintain it.
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.
When the credit bureaus are made aware of the mistaken information on your reports by your letter, they then have the burden of contacting the creditors who have reported the mistaken data so that it can be corrected. The process of correcting your credit report must take place within a reasonable time period of 30-45 days. If it not, it must be expunged from your record.
Once you have cleared all three of your credit reports of any inaccurate information, generally you will see an improvement in your credit score within several months. It is then up to you to maintain your good credit rating by paying your bills on time and maintaining a low debt to income ratio.
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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