A credit score is a numerical performance that is a measurement of your credit worthiness. It makes up part of your credit report and credit rating that creditors and lenders look at before extending credit to you. Your credit report contains detailed information about your financial history. It contains information about you. It contains who you owe and what you owe. It contains information about your employment and any public records that may affect your credit history. It includes details about your driving history and whether you have ever been the victim of identity theft. Credit lenders use this information to determine if a customer will be a credit risk to them. What is in your credit report is a concise picture of your credit history. With that information, they can come up with a credit score or credit rating for you.
Read the Fair Credit Reporting Act and contact both the consumer reporting agencies and the business that provided the information. You have the right that the information on your credit report is accurate and should not cause you any harm. Consumer reporting agencies must correct inaccurate and incomplete information in your credit report. They are required by law to do so if you dispute the information. Because of this, it is to the consumer's interest that the agencies verify an account as soon as they receive your request. If they cannot or do not, they must change the information to what you request. Write your dispute letter and send it to the agency. Make sure you send it return receipt requested so you will have documentation that they received it. By law, they must investigate the dispute within 30 days. If the agency finds that the information was not verified then they must remove it from your report. They do this by contacting the creditor and request that the information be removed. If the creditor does not respond within a reasonable period of time then the disputed account must be deleted. This is an important part of the process. If you do not receive a reply within the 30 days then the bad credit information must be removed from your report.
If you are working on improving your credit and you want to add a credit item that would affect your credit score then you can add a statement of this type to your credit report.This will indicate that you disputes the information as being false and or they may take steps to verify it. Close any accounts that don't have a balance and which are less than half of your credit limit. If you have a credit card with a $50,000 spending limit and you have only a $10,000 balance on the card then you are using 90% of your spending and therefore have a higher debt to credit ratio. Also, make sure that your credit limits are well within your financial ability. Overwriting your credit limits may lower your credit score. Limit the amount of information in your credit file. Do not have credit cards or other easy access to funds. Do not apply for more credit than you can comfortably handle.
Keeping a good credit score is a simple thing. But you can't do it without being proactive.
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