Increase Credit Score

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Increasing your credit score is a multi step process that can take a long time. However, getting the ball rolling is sometimes the hardest one. How do you know where to begin?

First, you have to acquire your credit score. That way you know how much improvement you need to make. It gives you a starting point, so-to-speak. There are three major agencies that provide your credit scoring information.

* Equifax (www.equifax.com)
* TransUnion LLC (www.transunion.com)
* Experian (www.experian.com)

You can also get the information in all these reports from www.annualcreditreport.com or by calling 877-322-8228.

You are eligible to receive this information for free if:

* This is the first time this year you’ve requested it
* You’re unemployed
* You’ve been denied credit as a result of information in your credit report
* You suspect fraudulent activity or identity theft
* You’ve lost your job as a result of something in your credit report

Should you be required ...
... to pay for your credit report, each state charges something different; however you shouldn’t have to pay more than $10 for the information.

Once you have your credit report, look it over carefully. It should ideally be error free. However, if you have a very low credit score that you didn’t expect, your report may contain some inaccuracies. Repairing such inaccuracies is a quick way to increase your credit score.

For example, your report should accurately reflect your financial history. If you didn’t have any late payments in the last 7 years, none of your accounts should be notated as such. Additionally, all of your closed accounts should appear to be closed and be clearly marked with a “closed by consumer” notation. You should also recognize all the accounts on your report. If you don’t, it can be evidence of identity theft.

However, even accurate information may not need to be on there. Anything older than 7 years, like late payments, accounts sent to creditors, overdue child support, and things like that don’t need to be on your report anymore and can hurt your credit score if they are. Additionally, all credit inquiries by potential landlords, employers or banks that are older than 2 years don’t need to be on there either.

Even something as simple as a misspelling in your name, an incorrect address or any wrong personal information can adversely affect your credit score. Making changes to that information is an easy way to increase your credit score.

If you do find a mistake, you have to report it to the appropriate agency. Using a template, like the ones Creditelves provide (www.creditelves.com) can help streamline the process and help you know what to include in your letter. Things like accurate personal information, specific details about the perceived mistake, proof of the inaccuracy and any other information that will help the agency see that there is in fact a mistake are necessary to help resolve the issue.

The agency then has 30 days to respond to your letter after they receive it. If they disagree with you, you can try to contact the creditor directly, or add a statement to your credit report regarding the offending entry. If they do agree with you, they will either remove the error altogether, or they will amend your credit report to reflect the inaccuracy.

Disputing incorrect information on your credit report is often a very effective way to increase your credit score. For more information on increasing your credit score, visit www.creditelves.com.