|
Many good people have bad credit, and you may be among them. Bad credit can affect not only your ability to borrow the money you need or make large purchases like a home or car - a bad credit score can keep you from getting certain jobs or even renting a nice place to live. With the credit market in such a horrible shape, having good credit is more important now than ever during the financial crisis, as lenders are totally unwilling to loan you money if they see any derogatory information on your record that might indicate that you will not pay them back. Bad credit can follow you around like a black cloud, but you can take steps to improve your credit score now.
Beginning Your Journey Towards Good Credit
To begin your journey towards good credit and all of the privileges and benefits associated with a good credit score, you should first learn exactly where you stand by pulling a copy of your credit report and FICO credit score from all three major credit reporting bureaus in the country - Equifax, Experian, and Trans Union. Each bureau may contain different views of your credit, which necessitates pulling your report and score from all three. Legally, you are entitled to one free report from each of the three bureaus each year. You will have to pay to receive your score - but the charge is usually minimal and well worth it in your quest to recoup your good name and rebuild your credit file.
Report Erroneous Information On Your Credit File
Your credit reports will list all of the accounts that have been opened in your name. Study each account and compare the amount listed as extended on your behalf and your payment record with any notes you may have retained about the loan or account - such as cancelled check stubs or payment booklets. If you find any discrepancies in figures or amounts - report the item immediately to the bureau holding the report.
By law, the credit reporting bureau will be required to investigate all allegations that you might report, and have a certain number of days to clear up the matter or provide you with proof to the contrary. Make all requests to have an investigation of certain items done in writing, and mail it to the bureau via return receipt request to have a permanent record of your request.
Resolve Open Issues
Once you have established exactly where you stand and your current credit situation, begin working to resolve issues with your credit record by contacting any accounts that are in collection. Most creditors are more than happy to work with you to resolve the matter by letting you make some sort of payment towards the principle amount that you owe. If an item has been charged off, however, there is nothing that you can do to remove its notation from your report, but you can indicate on your credit report any extenuating circumstances that caused your account to not be paid - such as serious illness that prevented you from working.
That being done, be certain to apply for no new credit other than a secured credit card. A secured credit card works just as any other card, only you will make a deposit equal to the amount of credit you wish to have extended to you. Use your card wisely, and in just a few months you will add many points to your FICO score. You can find great secured credit card offers online that are issued with low interest rates.
|
