Since our economy has taken a sharp nosedive, it can be stated that many people are taking a closer look at their credit reports and credit scores, wondering how they can improve upon it. So, if you are among the many consumers trying to find ways to bump up their score, this article is for you.
Before you begin, you need to have a clear understanding of the definition of a credit score. Credit scores are numbers that have been established by the statistical analysis of consumers’ financial records. This analysis is a way to show how “credit worthy” each person is. All of this information is compiled and defined by credit report agencies. This number will tell lenders and potential employers how you handle your money and if you should even be considered for a loan.
In order to raise your credit score number, try to resolve any negative marks on your report. Once you do that, sit down and hammer out a payment plan that will show all on time payments as good marks. Remember, any business that you have a relationship with has the power to report you to all credit bureaus. So, it is important to stay on their good side; make your very best effort to pay on time.
Besides those types of credit report marks, you might have some that show incorrect payment amounts or late payments. Many credit reports are inaccurate due to not being updated. So, if you have wiped any debts clean through companies who have reported you to credit bureaus, dispute the data’s accuracy and request a removal of any bad notices that no longer apply. This will help increase your credit score.
After you have paid off any debts, contact your creditors. There is a law on the books that states any credit agency has to get in contact with your lenders in order to question your dispute. And, when they do, the agency has exactly 30 days to change any documentation.
So, as long as you make the changes laid out in these three simple tasks, manage your finances properly, and maintain an excellent repayment history, you will be able to keep a good credit score.