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Remember:
You have more than one credit report
There
are in the USA three major credit bureaus, which develop and calculate credit
scores. Many people are under
the
impression that they have only one when if fact most people have up to three,
that could all have different scores.
In addition to this there are also a number of smaller bureaus all doing the
same thing. Many larger lenders also implement their own credit scoring system
as well as using the credit bureau. In the event of a problem on your credit
report remember that there at least three different reports that may require
actions.
Always
stay above board
Although
this seems an obvious point but there are people about their credit score of
falsify loan applications due to poor credit history. This is a
complete waste of everyone’s time as it is simple to check your credit score,
it is also illegal and you could find yourself facing legal action.
To
be able to improve your credit score you must first be in possession of all the
facts and this means getting hold of your credit report. Once you have viewed
your report alter and/or update any information that is not currently correct.
This is one of the few things you can do to repair your credit score. There are
a few tips that can help you boost your credit report.
Make sure you know who viewing your Credit
Report and why
As
previously discussed multiple inquires on your credit report give a bad
impression but you will obviously want to know who has been viewing your
personal information and why they are interested in your financial situation. It
is a certainty that if you have applied of credit online, that report has been
viewed by someone but on closer inspection you may find that insurance
companies, landlords and potential employers may also be looking at your report.
In general when you supply someone with your social security number you are also
giving them permission to look at your credit report. While you shouldn’t bar
people from looking at your report it is good practise to keep an eye on who is
looking at it.
Contact all concerned parties when correcting
inaccuracies in your Credit Report
If
you find an error of your credit report you should obliviously contact the
credit bureaus to resolve the problem but you should also, in some cases,
contact the creditors whose account has caused the problem in the first place.
This can stop the original problem re-occurring and resolve the issue faster.
Keep
your accounts open
Why?
1.
You may inadvertently close an account that you require. For example if you
closed all your credit cards you may find that later on you need to re-apply for
a card which will lead to further searches on your report.
2.
most bureaus allocate high points to individuals that can maintain a good long
term relationship with their lenders. By all means close accounts that you
don’t regularly use, if fact this will aid your overall score, but do not
close a long term account.
3.
do not close an account if you care considering applying for a loan in the near
future. Closing the account will make your score initially drop and therefore
will not allow you to qualify for good loan rates.
4.
closing your accounts and spreading the debt over fewer cards will the
impression that you are overall overextended which in turn gives you a lower
credit score.
N.B
in the short term closing accounts will lower your credit score but in the long
term it can be beneficial.
It's
usually a combination of events
Credit scores are certainly not this clear-cut or simple as
there are different companies making different credit reports about you and
different creditors see things in different ways.
You
can have lousy credit even if you don't have loans.
Be sure to obtain some credit accounts.
Dispute Errors on your Credit Report
Firstly
contact the three major credit bureaus ( Transunion, Equifax and Experion)
and request copies of all your reports and scores. Read them over
carefully and make notes of any discrepancies or errors and then in writing
voice your concerns to the companies involved.
This
action is titled a dispute letter and the companies are legally bound to
investigate your claims within thirty days of receiving your letter. The letter
should have a professional tone; explain the problem and request that they
investigate the matter. Keep a copy of your letter and a note of when it was
posted.
State
in your letter that you are aware that the company only has thirty days to
investigate the claim and that you will be following the matter up. Be satisfied
that the company actually update your report to ensure that report ends up error
free.
Many
credit bureaus have upgraded their service and made it possible to edit your
credit report on line as well as giving you information on how disputes should
be handled and eventually resolved. If you follow the rules set out any
inaccuracies contained in your report can be removes and your credit score
promptly updated.
Add a note to your Credit Report if there is an
unresolved Problem
There
are occasions that there is a legitimate reason for an unpaid bill such as a
dispute with a company over services received or a case of identity thief. In
these circumstances the outstanding bill will obviously lower your credit score
but you can request that an explanation be entered on to your report. It is up
to the particular lender viewing the report whether or not they put any
emphasises on this note. The note will not adversely affect your credit score
but it will affect your credit report but more importantly it leaves a paper
trail of the problem that potential lenders can view.
Know the difference between soft and hard
inquires
The
term “soft” means you have viewed your report yourself whereas a “hard”
inquires originates from potential lenders and can affect your credit score
quite dramatically. Regular checks on your credit report are to be encouraged.
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