subject: Dangers Of A Bad Credit Rating - 2 Tips To Keep In Mind To Improve Credit Score [print this page] Dangers Of A Bad Credit Rating - 2 Tips To Keep In Mind To Improve Credit Score
Many people just don't realise how important it is to look after your credit file and keep it updated. In modern 21st century life your credit report can determine the kind of job you do, where you live, the type of car you drive and even if you can own a cellphone or not! That's how powerful a healthy credit score is... and if yours isn't good, you must start to improve credit score right away.
If you suffer with a bad credit file and a low score, then you need to start repairing it right now or it could play havoc with your life for ever.
Here Are Two Tips To Help Improve Credit Score:
Tip 1: Dispute Errors On Your Credit Report
Get a copy of your credit file from each of the major credit reference agencies: Equifax, Experian, CallCredit (UK) and TransUnion (US). Carefully read over the reports and identify any errors that you find. Write to the credit reference agencies and request that any mistakes be removed or at least investigated.
This is a dispute letter' and the credit reference agencies must investigate your dispute once they receive your letter. Keep a copy of all correspondence that you have with each of the agencies and especially note dates and times when each letter was sent.
Always ensure that your letters are worded in a calm way and state your problem clearly. Request an investigation and ask for, and offer, feedback and information. DO NOT accuse or abuse as this will be noted and won't be helpful in anyway. Remember, there's a problem... you want to resolve it as soon as possible with the help of the agencies.
Just because the agency investigates doesn't always mean that your credit report will end up error-free automatically, so you must follow up and ensure that they are taking action.
You can now contact many credit reference agencies online and request them to correct errors on your credit report. The information on their web sites tells you exactly how disputes must be handled to be effectively resolved. Follow this information so that any inaccurate information on your file is removed promptly and your credit score is updated as soon as possible.
Tip 2: Add A Note To Your Credit Report If There's A Problem You Can't Resolve.
There are many real and legitimate reasons why you missed a payment or didn't pay an installment on time, but the the fault' will still register on your credit file. If you have a reason that you feel will shed a better light on why you faulted' then you can ask for a notice to be attached to your credit report to explain the issues and your circumstances.
There's no proof that this does any good at all but some lenders will pay attention to this extra bit of information and some others won't. But it's better to have this information than to have nothing at all. This notice won't affect your credit score but will present a lender with a paper trail of the problem that they can refer to if they wish.
