If you are thinking of applying for a loan, it will be a good idea to first check your credit score
. So what resources are needed to check your credit score? For that information you will need to get it from a credit agency. These three are namely Experian, Equifax or Transunion. Customers can visit any of these websites and request a free copy of their credit report.
The typical range for credit scores for most people fall anywhere between 350 to 750 points with anything near 750 being a good score. If you find out your score is not close to the 700 range please know you need to do something to improve it. After you learn your credit score be sure to review it for mistakes. Look for errors and if there happens to be some, take the appropriate steps to fix them. You should call the credit agency to report the error and then send the supporting documents by mail. Never send the original copies because if they lose it, you have nothing left to support your claims so send photocopies.
After you send in your documents the credit agency will investigate the errors you reported. If your creditor cannot produce anything, then the error is immediately removed from your record and a revised copy will be sent to you free of charge. But if the report is correct, then you will have to take the appropriate steps to remove it. Your credit score may go down depending on your credit history. If there are unpaid bills in your history including late payments, you will need to pay them. Remember that these things will be in your credit report for the next 7 years while filing for bankruptcy lasts for about ten so you ca not run from it.
If you are already short on cash you will need to take drastic measures to ensure you can pay all of your debts in order to improve your credit score. If you have no quick ideas on how to generate enough extra cash to pay your past due bills then it may be wise to consult financial advisers. If you are not in a bad financial standing then it may be possible to make arrangements with your creditors to pay off those old bills. Just make sure you stick to the bargain because if you fail to do so, don?t expect them to be so generous the next time this happens.
A year later, you can request for a new copy of your credit report to see if the steps you have taken have paid off. If your credit score improves this year versus last year then you know you are doing the right thing and you will not have a problem anymore requesting for a loan. Everyone should check their credit score regularly . There are three credit reporting agencies to choose from and you can be sent a copy from all three of those agencies at the simultaneously or every few months. The three credit agencies have differing ways of calculating credit scores but they all prove whether or not a person has good credit.