This article outlines six very effective strategies to help you repair your credit score. From disputing errors on your credit report, to contacting creditors and credit bureaus to repair your credit to where you can find a good credit report. With these strategies we know you will be successful at repairing your credit score. Dispute Errors On Your Credit Report If you want to get a good credit score, you need to go right to the source - your credit report. It contains the information and data on which your credit score is based. lf you can alter or update the information in your credit report, your credit score will change to reflect the alterations. For this reason, acquiring and checking it is one of the first things you should do when repairing your credit score. Contact each of the three major credit bureaus - TransUnion, Equifax, and Experian - and always get copies of your credit scores and credit reports. Carefully read over the reports and note any errors. In writing, contact the credit bureaus and ask that mistakes be removed or investigated. This is called a dispute letter. Once the credit bureaus receive your dispute, they are required to dispute it within thirty days. It is important to keep a copy of your letter and note the date it was sent. You should not be accusatory or abusive in your letter. Simply calmly and clearly state the problem and request an investigation. Make sure that you do follow up with the issues you raised in your letter. Just because the agency investigates your credit report does not always mean that it will end up error free. Many credit bureaus now make it possible for you to correct errors on your credit report online, and many have information on their web sites which clearly explain the steps to take. It is important that you follow this information exactly so that the inaccuracies on your credit report are removed promptly and your credit score is updated as soon as possible. Add A Note To Your Credit Report Sometimes, there are legitimate reasons why you didn't pay a bill. For example, if a contractor did not finish a renovation job for you and you did not pay them, that will count against you. If there are any unusual circumstances surrounding your credit report, you can ask that a note be attached to explain the problem. Some lenders may pay attention to this and some won't, but it is a better solution than nothing at all. The note does not necessarily help you get a good credit score, but it may help you on your credit report. More importantly, it leaves a paper trail of the problem that lenders can take note of. Know Who Is Looking At Your Credit Report Having too many inquiries can lower your chances of having a good credit score. But more than that, you likely want to know who can see your personal financial information. lf you sign a document with a lender or apply for credit online, you can be certain that someone is looking at your report. However, you may want to look over other documents in order to see who is taking a peek. For example, insurance agents will often look at your credit report. Some landlords and potential employers will too. In general, when you provide someone with your social insurance number, you may be giving them permission to look at your report. You shouldn't bar people from looking, but knowing who is looking is a good financial practice. Know The Difference Between Soft & Hard Inquiries There is often some confusion about what a "soft" and "hard" credit score inquiry is. When you check your credit report yourself, it is counted as a "soft" inquiry. When lenders look at your credit score it is counted as a "hard" inquiry. While both have a small impact on your credit score, hard inquiries from lenders affect your credit score more than soft inquiries. While checking your credit score does in fact lower it a small amount, you should not avoid checking your credit report because you fear it will make your credit rating worse. If you want a good credit score, you need to know what your score is before you can improve it. Contact Creditors & Credit Bureaus To Correct Your Credit Report When debtors find mistakes on their credit report, they often only contact the credit bureaus. While this is the most effective way to resolve the issue, you may want to contact the creditors whose account has caused a ding on your credit report. This helps you to not only build a good credit score, but to also resolve your credit score problems. Consider this example: Let's say that you were late sending a credit card payment two months ago because you were sick. Unfortunately, even if you have made a late payment, it will still count as a ding on your credit report. This is a good example of when you should contact the credit bureau to get the error removed. However, if you notice that a credit card company has you listed as having late payments when you paid on time, then you should contact the credit card company and ask how to resolve the problem. If you want a good credit score, it is crucial to have open and clear communication with your creditors. The information reported about you to credit bureaus should be accurate. If it is not, then the credit company is responsible for correcting the problem. You have an advantage here. The credit company, unlike the credit bureau, depends on your business for their money. This means that the credit company (or any other billing company presenting inaccurate information about you) is motivated to correct the problem or risk losing you as a client. If you find that a company consistently reports inaccurate information about you to credit bureaus, consider making a formal complaint to the company about it. There is no reason why a company's poor organization should prevent you from getting a good credit score. Get A Good Credit Report From A Reputable Source There are a number of resources for you to get a credit report. One place you can get it from is a credit bureau. You qualify for one free credit report annually. You can also get a free credit report if you feel you have been the victim of identity theft. If you can, get a copy of your credit report from each of the three major credit bureaus. If you can't get a free credit report, make sure you still get one, even if you have to pay. The savings you will enjoy on your loan rates by having a good credit score will more than pay for the cost of the reports. If you don't qualify for a free credit report from the credit bureaus, you should get one online. There are a number of online companies that offer free credit reports. These offers are very attractive because you get an online report without having to wait for a report to be sent to you, and you can often get several reports from the different credit bureaus at once. This saves you time and money. However, these online companies vary widely, so you will want to compare a few different ones before choosing. In our opinion, MyFICO provides the best and most comprehensive credit score reports. Before you purchase any report, make sure you read the terms and conditions to ensure that the company is fair, and that they have your best interest in mind. No matter where you get your credit score and, make sure that you obtain the most complete information package you can. If you are ordering your report online, look for one that includes graphs and other details that are easy to understand. The more information you can learn from your credit report, the easier it will be for you to improve your credit score. Even if you have to pay extra, it is important to get both your credit report and credit score. If you only get your report you will not be able to follow the secret and complicated math formulas they used to arrive at your score. The report itself will not make sense to you if you don't have your score in front of you as well. Mistakes in any area of your credit report can affect your ability to get a good credit score, so be sure to check the entire report for inaccuracies and errors.
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