Mar
30
Discovering an error on your credit report can be disheartening,
especially if you are applying for credit. However, you can write a dispute letter and get the issue resolved. The credit reporting agency is legally responsible for investigating errors, but you can also involve the informing party.
Be Specific With Your Problem
When you write your dispute letter, be as specific as you can about
your
problem. List the creditor’s name and contact information. Also include
a
copy of the erroneous report. Highlighting or circling the incorrect
information will draw attention to it.
The more information you provide the credit reporting agency, the more
legitimate your claim looks. Reporting agencies don’t have to look into
frivolous claims. So be as clear and concise as you can.
Don’t forget to also check the other credit reporting agencies’ credit
reports. You may find the same error and will have to write separate
letters
to each agency.
Site Sources And Dates When Possible
To help get your issue resolved faster, provide additional information
that
could be helpful. Send copies of old bills or statements that are
relevant.
You can also include copies of correspondences you had with the company
or
legal documents, such as a bankruptcy discharge.
By providing additional information, you make it easier for the agency
to
investigate the dispute. With detailed information, they can get to the
root
of the problem faster.
Keep Copies Of Paperwork
For your own records, keep copies of all your paperwork. Note dates
that you
sent out the letter, along with included information. This will help
you
keep the parties honest.
And when you do send copies, don’t send the originals. You may need
those
later on, especially if there is a mix-up of some kind. If you have any
phone conversations with the agency or creditor, also make a note of
the
person’s name, date and time called.
While you are sending a dispute letter to the credit reporting agency,
also
send the letter to the informing source. Many times these parties can
act
quicker than the agencies.
Make sure to follow up your letter with a phone call after a few weeks.
The
sooner those errors get fixed, the better loan rates you will qualify
for.
Here are our recommended companies for a
free copy of
your
credit
report and other credit rating resources.
Carrie Reeder is the owner of ABC
Loan
Guide, an informational website about various types of loans.
Popularity: 11%
Mar
27
Personal Credit Report Rating - 3 Tips to Improve Score
March 27, 2010 | Leave a Comment
Your personal credit report score largely determines the rates you can
qualify for with most types of credit. The higher your score, the
better rates you can get. To find your score, you can request it from a credit monitoring service or credit reporting agency. Most credit monitoring companies will provide it free with an introductory offer, but you will have to pay for it from a reporting agency.
With hundreds of factors determining your credit score, there are many
ways
to improve it. The follow three are the quickest ways to boost your
numbers.
1. Pay Off Short Term Debt
The less debt you have, the better your score. Actually, creditors look
at
your debt to income ratio. They also rate debt differently. So credit
cards
are seen as more negative that college loans or a mortgage.
Focus on paying off short term debt first, like credit cards. Paying
off the
other debt can come later. However, having credit cards and making
regular
payments is better than having no credit.
2. Spread Debt Around
Not only do lenders look at your general debt load, they also consider
specific accounts. Maxing out any account is seen negatively. It is
better
to spread that debt around to multiple accounts. Most advisors suggest
having no more than 30% to 50% of a line of credit in use.
Be hesitant to open a new credit card account though if you are
planning to
apply for a mortgage or car loan. Opening new accounts can also
temporarily
hurt your score.
3. Close Newer Accounts
While you are looking at your credit report, consider closing some of
your
unused, newer accounts. The more credit you have available, the less
new
credit you can get - even if you aren’t using it. However, the longer
you
have an account, the better your credit score.
One way to get around this is to close accounts, then wait a couple of
months to apply for a loan. This will give time for your credit score
to
jump back.
There are no quick fixes to credit scores. Time and good credit habits
are
the surest ways of getting to good credit standing and low rates.
Here are our recommended companies for a
free copy of
your
credit
report and other credit rating resources.
Carrie Reeder is the owner of ABC
Loan
Guide, an informational website about various types of loans.
Popularity: 10%
Mar
24
When you apply for a loan (home, vehicle, personal, etc) the lender will review your credit report. Based on the information listed in your personal credit report, a lender will either refuse or approve your loan request. Credit reports are important for several reasons. Primarily, they decide your creditworthiness.
Benefits of Credit Report Scores
Credit report scores benefit you and a lender. By reviewing your credit report and credit score, lenders are provided knowledge about your credit history. Individuals with a high credit score are generally dependable with credit. Thus, a lender is excited to grant a loan. The likelihood of a good credit applicant defaulting on the loan is low.
On the other hand, individuals with a low credit score may make a lender nervous. This person may have acquired a large debt amount and refused to pay the balance, or undergone misfortune (loss of employment, medical problems, etc).
Low Credit Score and Credit History
Various reasons justify a low credit score. If you have several missed or late payments, this decreases your credit score. Moreover, failure to pay for a loan, repossessions, or foreclosures has a negative effect on your credit report.
Too many credit inquires is also bad. Together, these factors are damaging to your credit history. A low credit score may prevent you from getting that house or car. In addition, if you are able to get a loan, you may pay higher interest rate and fees.
Improving Bad Credit History
The best way to increase your chances of getting a new car or home is to improve your credit score. Increasing your credit score is challenging. To begin, you must make an effort to pay credit accounts on time. If you have past due accounts, contact the credit lenders and negotiate getting the accounts current. This may involve the lender extending the length of the loan.
Moreover, pay down the balance on credit cards. Limit your amount of credit inquiries. If you have recently filed bankruptcy, open new credit accounts and begin rebuilding credit. If you have too much debt, consider consolidating all your bills into one loan.
View our Recommended
Sources for Free and Cheap Credit Reports Online.
Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.
Popularity: 11%
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