Tag Archives: How To Improve Your Credit Rating

How To Improve Your Credit Rating

Terry Edwards asked:

Poor credit ratings are common, and whether a person is considered wealthy, middle-class or poor does not seem to have a true relationship to their credit rating. Perhaps this trend is because some of us live beyond our means, or because we get into financial hardships that we have no control over, or maybe it’s due to simple procrastination. Whatever the reasons may be, many Americans are searching for a way to improve their credit rating.

If this describes you please know that you are in good company. Surveys prove that credits ratings are a concern for most American households. This article will provide some simple strategies for improving your credit rating.

Although credit ratings will not go up overnight, with time they can be improved. Start by getting a copy of your credit report. Check it thoroughly for accuracy. If you find any false or inaccurate information you should act immediately. Contact the reporting agency clearly identifying each mistake. Be exact in stating why it is wrong. It is wise to send a copy of your report with the errors circled along with any supporting documentation. Keep copies of all forms, letters and documentation that you send the credit bureaus.

The agency is required to investigate any relevant dispute within 30 days of receiving your letter. Anything that is not verified as accurate by a creditor is removed. If changes are made to your credit file you will be notified and the bureau will send you an updated copy of your credit report.

The next step in improving your credit rating is devising a spending plan. Ideally you want to reduce your debt to the degree that you are able to make payments on time – every time.

Being proactive is essential to improving a credit rating. If you are not able to make your payments on time call your creditors to negotiate a payment date or schedule. This will keep your accounts in better standing

If your credit is extremely bad, perhaps you’ve filed bankruptcy, you need to work at re-establishing good credit as soon as possible. Buy something on credit and pay it off according to payment schedule or earlier.

Other suggestions for improving your credit rating include using the services of a professional debt relief counselor. Many of such services and programs have been created over the last few years. These programs can save you money, time, and stress, as you improve your credit score.


How To Improve Your Credit Rating For A Better Life

Robin Boddy asked:

Whether it’s for a car loan, a new credit card or a mortgage, sooner or later you’re going to apply for credit and that’s why you need to take charge of your credit rating now. Thanks to the new Fair and Accurate Credit Transactions Act, you are entitled to one free credit report a year from each of the three major credit bureaus (which you must obtain from a joint source agencies have set up). But it’s up to you to monitor your rating, and your behavior, to make sure your score is up to par. That minimal effort will pay off in significantly lower interest rates, decreased damage from identity theft and, since nowadays potential employers may check applicants’ credit ratings, maybe even better job opportunities.

Your credit report is simply a listing of how much credit you currently have available, how much debt you have and how well you’ve met your payment obligations in the past, but it’s the key to your standing with potential lenders. Managing your credit involves scrutinizing your reports regularly for errors, reviewing them for signs of outside tampering and working to improve areas where your borrowing record is less than stellar. The most important thing you can do to boost your credit rating is to learn your score. If it’s great, maintain it. If it’s bad, fix it. It will mean more money in your pocket.

The source for free cut credit reports is http://www.annualcreditreport.com. You can order reports from the individual credit agencies, but then you’ll have to pay for the information. Prices vary but generally run around $10 per report. Two exceptions are if you’ve been turned down for credit in the past 30 days, or if you believe that you have been a victim of fraud, you are entitled to free reports from each of the bureaus.

It’s important to keep an eye on all three reports – they may not contain identical information, especially if inaccuracies have crept in, and you don’t know which company a potential lender will contact to get your record. But before ordering your reports, consider your strategy. You can order all three at once or you could spread them out throughout the year, for example, requesting one from a different company every four months. Distributing your requests gives you the best sense of your credit standing on an ongoing basis, allows you to react quickly to signs of identity theft and lets you see how your actions have affected your credit. But ordering all three of your credit reports at once gives you a good sense of your credit standing at a given moment in time and is especially helpful if you’re on the verge of applying for a significant loan and need to assess your chances.