A clean credit report can come in handy when life throws you a wrench. Here are some tips on how you can clean up your credit report.
Look at your credit report
You can get a copy of your credit report every year from http://www.freecreditreport.com. You have to answer a series of questions related to your financial and living history. You will have a choice to view one or all of the reports from the top three credit bureaus, Transunion, Equifax and Experian. Then you will be directed to a page that should show your credit history for the last seven years. The important thing is to view all of the creditors and make sure that everything on the credit report is legitimate. If there are items on your credit report that should not be there, you can submit a dispute with the credit bureau. These reports will also let you view your score for a small fee. Your credit score can be a key to financial freedom.
To ensure that there is no suspicious activity on your accounts, you should view all three reports. You can do this once a year from this website, but there are several more that might require a small fee, a deposit for a trial, or a credit card to view the reports.
Another factor that might impact your credit score is an unauthorized credit inquiry. Credit inquiries can be seen at the end of the credit report. It is important not to apply for too many credit card accounts, especially if your information will be shared with a third party.
Pay off Credit Cards first
Credit card debt is the most common debt that is found on a credit report and it carries a lot of impact. If the amount is small, pay it off first to help with your credit standing. You can contact the company to see if there is a way to negotiate a payment if the payment is too high. Making payments on the account if it is still active, will also help your credit standing.
Build credit while you pay
If the account for the card that you are paying off is not active, try to get an active credit card just to build credit. Charging a small amount and paying the bill on time will show creditors that you are responsible with credit. They will be more willing to give you credit in the future.
Try not to use your entire credit limit
Creditors are monitoring how much credit you use each month. Calculate how much credit you will use each month. If the limit is too low and you find that you need to use all of it, ask your credit card company to increase the limit. The lower the percentage of credit that you use, the more responsible that you will appear to creditors. More information about this can be found at the site.
Make your payments on time
When you make a late payment, it affects your credit score. One simple way to fix this is to set up an automatic payment system for your bills with your bank. The companies will be authorized to take the payments, you can save time by not sitting at the computer or mailing in forms to pay your bills, and some companies might offer an incentive for this option. If they feel like they will get their money on time each month, they will feel more at ease and might try to make your payments a little easier.
Find out what the problems are on your credit report. If the problems are not simple, there are many companies that are registered with the Better Business Bureau that can assist you with getting your credit clean. A good credit score can save you a lot of time and money. Try to invest in making sure your credit is acceptable.
