Has the economy left you a bit bruised?
Alan is a Realtor located in Illinois. Below he provides some GREAT tips in your credit score. Specifically he talks about what helps and what hurts your scores. Overall, he suggests to talk with a Credit Counselor for a more detailed looked at your specific situation. Great content so take a few minutes to read through it.
Today, your credit score is more important than ever. A good credit score can be the difference between being able to refinance, or not... or be the difference between being able to afford the house of your dreams, or not.
If the latest bouts of economic frivolities have left your credit a bit worn and bruised, never fear.... here are a few tips for repairing mildly bruised credit.
1) Order your credit report from the to three credit bureaus (Equifax, TransUnion and Experian)... It's possible for the three reports to be slightly different, since creditors aren't required to report to all three, and they typically only report to the one that they're members of. Sometimes that one will send out reports to the others, but not always. This applies to good news too!
The "free credit reports" website do offer a free version, but they're often not as complete as the ones you order directly from the company.
2) Read those credit reports, and read them carefully. If you're not clear on how to read them, contact the agency who generated the report, and they'll happily walk you through it, or you could probably call your local Realtor, and they'll be happy to help (won't we?!).
You're looking for typos, inaccurate information, open credit accounts that have been closed, or don't belong to you... or even those you don't recognize.
3) If you find something that's wrong... dispute it. You can fill out a dispute letter, or if the dispute is more involved, write them a letter. Make sure you send a photocopy of the report involved with the mistake circled in big red pen. Include any photocopies of any documentation you have (they're not just going to accept your word for it).
4) Document, document, document. (did i mention Document?) Keep copies of everything you send them... copies of your letters, copies
of their responses. The credit bureaus are required by law to investigate any relevant dispute within 30 days of receiving your letter. Any item that they cannot verify MUST be removed.
5) Follow up. If you haven't heard from them, follow up with a phone call, or letter to see what's being done. Be a bulldog, you are your own best advocate.
6) The knee-jerk response, when trying to improve your credit scores, is to close open credit cards. But closing a credit card, that's in good standing, that you've had for 20 years could actually damage your score. If you're trying to improve your credit, talk to a credit professional before opening OR closing any credit account. This includes any store cards (Macy's, Target) as well as any gas cards (Shell, Exxon), not just the big ones like VISA and MASTERCARD
Comments(9)