Those with a low credit score and/or errors on their credit report don’t have to sit idly by. There is a credit solution for those who want to help improve their credit, and these five tips may help you find it.
1. Review your credit report frequently
Errors in credit reports are not uncommon and can be damaging to your finances, especially if the error causes your credit score to go down. Many people with low credit scores are prevented from getting loans or are given loans with high interest rates.
Review your credit report frequently and look for errors. Whether it’s as small as an address error or as big as a bankruptcy listing that doesn’t belong to you, investigate or dispute the erroneous credit report listing as soon as you can.
2. Make sure all lines of credit appear on your credit report
One of the keys to having a good credit score is to have more credit available than you use. It’s for this reason that all of your credit lines should be listed correctly. Some creditors don’t fully report to the credit reporting bureaus. If your credit reports and credit scores suffer because of a lack of completely reported credit histories, including the amounts of all revolving credit lines, contact the errant creditors and ask them to fully report those accounts.
3. Write professional investigation and dispute letters
Make copies of your credit report (with errors and other unfair credit reporting circled or highlighted) and any related supporting documents, such as cancelled checks or statements, and include those with the dispute letters you send. This step is critical to finding a credit solution.
Mail your documents to all three bureaus, and be sure you only send copies of personal materials as originals most likely will not be returned. Make sure to keep a copy of the letter as well.
4. Hire professional credit services and get help with your credit solution
While you can conduct your own investigations and disputes, you can also enlist credit services from a professional credit repair organization or law firm to do the work for you. Reputable credit services can typically do the work more efficiently and thoroughly than an individual without experience in credit repair.
5. Before you hire credit services, know your rights
Credit services are regulated by the Credit Repair Organizations Act. This act sets forth several requirements that credit services must follow. These requirements are meant to protect you from credit repair scams and make it possible for you to seek a credit solution.