How to Fix a Credit ScoreLeave a Comment
Your credit score affects so many aspects of your life that it is necessary to learn how to create and maintain a great one. Most people do not realize that their credit reports likely contain flaws. It is because of these flaws that you need to know how to fix a credit score. The process does take a little time, usually about 2 months, but is worth the effort.
Following these simple steps will help you fix your score and maintain a good credit report from that point forward.
- Immediately apply for a free credit report from each of the 3 major credit bureaus. As a consumer you are entitled to 1 free report each year. Your report will be different with each of the bureaus so it is necessary to have a copy from each agency.
- You will need to review each report carefully. Start with the personal information. Is your name spelled correctly? Is your address listed correctly? Are there addresses associated with your account that are not yours? Are their employers that do not belong on your report? All of this information is very important. Something as simple as having your middle initial incorrect can cause you to be associated with someone else. Birth dates are also a very common place to find a mistake. A miss-key in this area can cause you to have a second identity.
- Review each and every entry on the report. Make sure that payment records are right. Verify that the balances on the accounts are correct and that the monthly payment reflects what you actually pay. If it is a bad account verify the last date of activity on the account. This is crucial! If the last date of activity is more than 7 years old for a regular account or 10 for a lawsuit, tax obligation or bankruptcy, you can demand that it is immediately removed.
- Once you have found all the errors, dispute them using the forms located on their websites. If you select to dispute by snail mail this needs to be documented through return receipt and will cause the repairs to be delayed. The companies have 30 days to respond to your requests.
It is estimated that over 80% of all credit reports contain mistakes. It is the consumers responsibility to make sure that their reports are correct.