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3 Easy Steps to Rebuild Credit and Increase Your Credit Score

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If you've made financial missteps in the past, your credit scores might not be as high as you'd like. While you won't be able to instantly delete these past negative items from your credit report if they're accurate, you can take steps to rebuild a more positive credit history starting today, and improve your credit going forward.

 

What's Influencing Your Credit Scores?

 

Many factors can influence credit scores. Some of the most common credit scoring factors are:

  • Payment history — a record that includes the on-time payments you make as well as late or missed payments.
  • Credit utilisation ratio — compares the total amount of credit you have available to you with how much of it you're actually using right now.
  • Total debt — the total amount of debt you have, including credit cards, loans, collections, and other credit accounts.
  • Mix — the types of credit accounts you're using.
  • Age — how old your credit accounts are.
  • Hard inquiries — your recent applications for new credit.
  • Public records — such as bankruptcies or civil judgments.

         The best way to know what factors are affecting your credit scores is to look over them often - and you can check your credit              score from Experian. You'll get a list of the credit score factors that are impacting this score the most. If you're trying to.                       improve your credit scores, you should consider tackling these factors first.

Here's a simple process you can follow:

1. Review your credit reports.

The credit bureaus TransUnionFederal Trade Commission (FTC), and Experian are required to give you a free copy of your report once a year. All you have to do is ask. (Click the links to request a copy.)


Once you've signed up, you can see your credit scores and view the information contained in the reports. Generally speaking, the entries on the different reports will be the same, but not always. For a variety of reasons, credit reports are rarely identical. You can also check that the Credit card report really work by using the credit card generator and generate the report and Review the credit report.

2. Dispute incorrect late-payment entries

Mistakes happen. Your mortgage lender may report a payment was late that was in fact paid on time. A credit card provider may fail to enter a payment correctly.


You can dispute late payments whether in accounts that are current or accounts that have been closed the same way you dispute derogatory marks.

Your payment history is another factor that weighs heavily on your credit score, so work hard to clean up those errors.

 

3. Decide if you want to play the game some credit repair companies play

 

So far we've discussed trying to remove inaccurate information only. You can, if you choose, also dispute accurate information.


For example, say an account went to collection, you never paid it, and the collection agency gave up. All that remains is the entry on your credit report. You can still choose to dispute the entry. Many people do. And sometimes those entries will get removed.

Why? When you enter a dispute the credit bureau asks the creditor to verify the information. Some will. Many, like collection agencies, will not. They'll simply ignore the request and if they do ignore the request, the agency is required to remove the entry from your credit report.

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Saved by sevaragreen

on Jun 27, 20