Improving Your Credit

So far, we have covered what your credit score is, where to get your score, and how scores are calculated…. You are probably wondering how you can improve your credit score?

First, identify and remove inaccurate information from your credit report

    You should inspect your report for any of the following:
  • Accounts that are not yours.
  • Accounts that are incorrect (wrong balance, wrong credit limit, etc)
  • Outdated debts (negative items that are older than 7 years)
  • If you are an authorized user and the credit holder is behind on his or her payments.
  • Credit accounts that were paid but still shown as outstanding.
  • Credit limits that are not being reported accurately.
  • Any errors that require dispute.
  • Unauthorized inquiries.
  • Any inaccurate information that you find in your credit files will likely be lowering your score or preventing it from being higher than it is right now.

Therefore, your first step to improving your credit score is to plan which inaccurate information you need to correct or remove. The negative, incorrect, or wrong information can be disputed with each of the credit bureaus that are reporting the information. This is best handled with a well written dispute letter identifying the information that needs to be deleted or corrected and the reason why.

The Fair Credit Reporting Act (FCRA) permits you to make a dispute claim, requires the bureaus to investigate it within 30 days and either provide proof that it is your legitimate debt or delete the item.

This is how many negative items are deleted from credit reports like yours every day.