What can you do to raise your score?
 Your
credit score
is a mix of
factors that all work together. A deficiency in one area can be made up by
a high score factor elsewhere. Thus, it is impossible to answer just how much
your score will go up, or if your score will go up by paying off the
balance of a particular debt.
Here are some of the things that would need to be considered:
-
What
else is in your file.
-
The
amount of your other debts.
-
By
paying the debt, are you affecting something else.
For
example, borrowing on a credit card to to pay off a finance company loan might
help or it might hurt. One way it can do harm is if it causes you to reach your
limit on one or more of the credit cards. Closing or consolidating
accounts can sometimes be negative because it may make you look like you are
"maxed out" on the accounts that remain. Scores usually are
better when borrowers have smaller balances on more cards, rather than than high
balances (near the limit) on just a few cards.
Raise
your credit score in 30 days or less
The
way you can most quickly affect your credit score is to make sure your credit
report is correct. You
can get your credit report,
credit score, and analysis of ways it can be improved by clicking here. Your
credit score is included free with the 3-bureau credit report.
-
Be
sure all the accounts listed on the report are actually your own.
-
Dispute
negative information if it is wrong.
-
If
positive information is missing, insist that your creditors to report it.
Note
that closing an account on which you had previously missed a payment or
satisfying a judgment or collection item does not make the late payment or item
disappear from your credit report.
The
credit bureau must open an
investigation on all non-frivolous claims within 30 days. They send your
challenge to the creditor that gave them the disputed information. The
procedure is outlined here.
Long
term
If
you follow the principles of good credit, your scores will improve over time.
- Pay bills on time in accordance with your agreement
- Don't let your credit card and revolving balances get too high
- Apply for and open new credit accounts only as needed
|
Procedure for Resolving Credit Report Errors
First, get your single bureau
or three-bureau
merged credit report. (Your credit score is included free with the
three-bureau report.) Then...
| To
start... |
Call the credit bureau.
Identify each disputed item, state the facts, and tell them why it should
be deleted or corrected. The phone number is on the report.
|
| Follow
up in writing with copies (not originals) of documents backing your
claim. It helps to include a copy of the report on which you've
circled the disputed items. |
| Preferably,
use certified mail and request a return receipt. Keep copies of
everything. |
| Experian,
Equifax, or Trans Union must... |
The
bureau you contact must investigate the items in question. |
| Forward
your dispute with all relevant data to the information provider (the
company that provided the inaccurate information about you.) |
| This
normally must be done within 30 days. (Frivolous claims can be
rejected without investigation.) |
| The
information provider must... |
Investigate
and review all relevant information provided by the credit bureau and
report its findings to them. |
| If
the disputed information is found to be inaccurate, this company must
notify all nationwide credit bureaus of the error, so that it can be
corrected. |
| The
credit bureau must then... |
Delete
all disputed information from your file that cannot be verified. |
| Correct
all information that was found to be erroneous. |
| Update
data that was incomplete, such as the current status of the account. |
| Delete
items from your report that correctly belong to someone else. |
| You
then have the following rights.... |
A
written copy of the results, and if a correction was made, a free copy of
your report from the bureau. |
| Written
notice if the bureau later adds the disputed item back onto your report
based on proof from the information provider. The provider's name,
address, and phone must be indicated. |
| Correction
notices (upon your request) sent from the bureau to anyone who received
your report in the past 6 months. |
| A
corrected report (upon your request) sent to any employer who received
your report in the past 2 years to evaluate your application for a job. |
| If
you disagree with the findings, you may write a statement and ask that the
credit bureau include it all future reports. |
| |
|
