You Can Improve Your Credit Score
Your credit score is a figure calculated by the three big credit reporting agencies to determine your credit rating. The higher your score, the lower your interest rate will be on car loans, a mortgage, and more. Indeed, employers have access to this information too and a low credit score could keep you from getting the job that you want! So, underestimating the importance of a credit score could be a serious mistake. How about you? Do you know what is in your credit score? Do you know how to get a higher score? Read on for some helpful tips that can guide you in your quest for a higher credit score. All three major credit reporting agencies calculate their own credit scores based on your credit history. Experian, TransUnion, and Equifax each keep a record of your credit report on hand and they each calculate your credit score differently. Likely, you'll receive a similar score from each agency, but that isn't a guarantee.
The first thing you must do is to pull a copy of your credit report. You can get one free copy annually from each agency as per the Federal Trade Commission. Annual Credit Report . Com is the only site online authorized to extend this service to you. You'll pay extra for your credit score, but it is a nominal fee of about 7 dollars or less. Once you get the required information, examine each report carefully. If there are mistakes on your credit report please know that these errors can work against you and lower your credit score. As mentioned earlier a lower credit score will result in higher interest rates on loans you apply for. These errors could even cause you to be rejected for a loan! When detecting errors, contact the appropriate credit reporting agency and notify them of the mistake. Usually, you can do this right online or by a phone call or via a certified letter. The agency will tell you the best way to document the error. If the error has been proven it will be expunged from your credit report and your credit score will be adjusted accordingly. This could take 2 or 3 months time so if you are preparing to apply for a loan in the near future, take action now to get your credit score and report immediately. Of course, if everything on your credit report is correct then the only way you can raise your credit score is through time and the paying off of your debt. So, make certain that you have everything in order before applying for a loan otherwise your could pay too much or be rejected all because of a diminished credit score. |