In todays turbulent economic state, monitoring
your credit score has never been more important. The global credit
crunch has meant obtaining credit has never been more difficult and a
poor credit rating has denied numerous people from borrowing the money
they so desperately need.
This article offers seven quick and simple actions
you can take today to improve your credit score and get back on track
during these difficult times.
1. Get a Free Credit Report. There are several
online services which are able to provide you with an up to date
version of your credit report. Better still, obtain a 3-in-1 credit
report which includes all the information the three main credit
reporting agencies have about you.
2. Once you have your credit report, analyse the
credit bureau scores. You know where you stand regarding credit and now
have a figure to work with. Ideally you want a score of 700 or above
which lenders will have no qualms about offering you credit. Anything
below 620 requires improvement.
3. Analyse your credit report carefully and make a
note of any errors which are present. These could be errors as simple
as your name or address being spelled incorrectly. Every one of these
errors need to be rectified and is the first step to improving your
credit score. Write to each of the agencies which have incorrect
information on file and supply any supporting documentation where
necessary.
4. If you have been obtaining credit for a long
time there could be accounts in your report which are older than seven
years. Credit consumer law requires agencies to remove any accounts
which are over seven years old, so write to the agencies asking them to
do so.
5. The next step is to work on any late payment
entries which may be present in your report. Approach your lender and
ask if they are prepared to remove the entries because you are prepared
to get your own house in order and work on paying off the loan. Your
lender may refuse to do so and if this is the case, then again contact
the credit bureaus and report the entries as errors. You may not be
aware of this, but lenders have to respond within 30 days to any
challenges and if they don't the bureau is obliged to remove the
accounts from your credit report.
6. Now it's time to improve your credit rating.
Ensure you are up to date with all of your payments each month and do
not exceed any overdraft limits. The objective here is to pay down your
debts, not max out any more limits!
7. While you should stay on top of all your
payments, make sure you concentrate on the account with the highest
interest rate first. This will save you money in the long run. Also,
try not to just pay off the minimum monthly payments on your other
accounts. If you can manage to pay a little extra each month you are
also lowering the total amount you owe interest on.
These seven simple steps can drastically improve
your overall credit score if you stick to them. In short, obtain your
latest credit report and remove any old accounts and errors. Start
paying down your debts and make sure it's more than the monthly minimum
payments. A little bit of work each month will see your credit rating
improve in no time!
Now you have a 7-step plan to improve your credit
rating, why not get a free credit
report and take the first steps to a better credit rating.
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