Improve Our Credit Score

Improve Our Credit Score

Improve Our Credit Score. Family members always want to know as they should what the very first goal should be and I agree that to improve our credit score is at the top of the list. If you don't increase your FICO score, you will pay more money for almost everything. Sure, you can still buy on credit, but the interest rates you will pay are going to be higher than if your credit was better.

How Do You Accomplish Getting A Better Credit Report?

The first thing you have to do is to get current copies of your credit report. Get all three of them. Equifax, Transunion and Experian. You're no doubt wondering why you need all three, but the more important fact is that each credit report will  have a different set of scores. This is because each company has software that rates and weighs reporting differently. When you apply for credit, the lender normally uses the middle score.

Lenders Normally Use The Middle Credit Score.

If Experian is 710 and Transunion is 682 and Equifax is 671, a lender will opt to use the middle score of 682. This is important to you if your goal is to improve credit scores and pay less money.

Pay Attention To Every Detail.

Look at your credit reports and match up each account. Some of the accounts will not be listed and it's likely that they will not match from report to report. In other words, the Citi Card on Experian might not match the reporting details of the Citi Card on Transunion. There could be a number of reasons for this discrepancy. Maybe one of the Credit Reporting Agency's doesn't have the latest payment recorded.  That's why you have to check all the information being reported.

Dispute Even The Smallest Error

You may think some of these errors are inconsequential, but you don't know enough about credit scoring to make those decisions. That's why it is crucial to dispute anything that seems out of place. Is your name spelled wrong? If so, make them correct it. We had a lender ask about this recently when a client had three different spellings for his name. He wasn't denied the loan, but it took weeks longer than necessary and he was at risk of paying a higher interest rate when an adjustment was approaching.

You Have To Dispute All Three Reports.

It may seem obvious, but you have to dispute each credit report individually. The Credit Reporting Agencies do not work together and they don't get together to compare notes. If each one reports differently and the scores don't match, you should know that your dispute letters must go to each company individually.

Credit Reporting Agencies Have 30 days To Verify Disputed Information.

Send your dispute letter Certified-Return Receipt. This means you get someone, somewhere to sign for your mail. When you get the signed copy back in the mail, staple it to the copy of the report you sent. Note the date it arrived at the Credit reporting Agency. This is the date when their 30 days starts. Mark your calender.

You Also have To Send Proof Of Identification.

Don't send a dispute letter without at least a copy of your Drivers License of Identification Card. Why? The Fair Credit Reporting Act states very clearly that employees of these reporting companies can be held liable if they send your private information to the wrong person. they're not taking any chances, nor should they. Sometimes they will also ask for a copy of your utility bill and or social security card. Make sure the address matches and your name is on whatever you send in.

You Can Improve Your Own Credit Score.

You don't need to hire anybody to do this work for you and you don't need credit repair services. You need common sense and a willingness to get the job done.