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Maintaining a healthy credit report score is very important in today’s world. Unfortunately, many situations can take place that damage credit scores, making it difficult to obtain financing when and as needed. If you need to improve your credit report score, here are some tips on how to get started.
One of the most common issues with credit scores is outdated or inaccurate information contained on one or more credit reports. To begin the process of improving your credit report score, your first task is to obtain a copy of your credit report from each of the major credit reporting agencies. Keep in mind that the information on each report may vary, which is one reason why many creditors use at least two bureaus when evaluating the creditworthiness of an applicant. This means you must read all three reports in order to get an accurate picture of what lenders see before doing business with you.
As you read each of the reports, look for any data that is not current. For example, you may find a reference to an account that still shows an active balance, even though you paid it off over a year ago. There may also be accounts showing as open that you’ve closed at some time in the past. Since your credit report scores are based in part on the amount of debt you currently have as well as the number of creditors, contact each of these creditors and request that they update the information on your credit report as soon as possible.
While contacting the creditors is necessary, also make it a point to contact the credit reporting agency and note the inaccuracies on your report. This can also help expedite the process of updating your information and make sure potential lenders see an accurate credit report and score. Make sure to keep following up until you have confirmation that the updates have been made.
There is also the possibility that you will find data reflected on the report that is not relevant to you. False data can end up on a credit report due to errors with a creditor or some similar data entry error along the way. Call attention to the false data at once, and follow up until it is removed from your report. This will make it much easier to determine your true credit report score as of the current period.
Keep in mind that even if you’ve had financial issues in the past, you can incrementally improve your credit score by not falling behind on any current debt obligations. Make it a point to pay at least by your current due date. In the case of credit card debt, try to pay more than the minimum, even if it is only an additional ten percent. More creditors are not only making note of timely payments, but also noting when more than the minimum payment is submitted, and supplying that data to the various credit reporting agencies.
Be aware that there are no quick fixes to your credit report score. Avoid any type of program that claims to increase your credit score in a matter of days or even weeks. Speak with a financial counselor and learn how to communicate with your creditors and the credit reporting bureaus. While the process takes time, you will eventually see improvement in your credit report score.