Let's say you want to buy a new car or take out a mortgage. You're sure that your application for credit will be approved because you have good credit, but when your credit report comes back, it says that your application was turned down. Or, maybe your application was accepted, but the interest rate is so high that you can't pay it. Then you realise you need to get your credit score up as soon as possible.
Most of the time, the person or company helping you get the loan will tell you how to do this. Since many of them don't, you should know how to do it yourself. Don't worry, because everyone can do it. First, read all you can about fixing your credit. Check the laws about credit repair to find out what your rights are. Don't have too high of hopes about the process. Be realistic.
Remember that it takes time, work, and patience. If you work hard, a creditor will notice and think about how hard you are working when deciding whether or not to give you credit.
You should ask Experian, Equifax, and TransUnion for a copy of your credit report. They may have slightly different information on your record, so it's important to get and read all of them.
Look through your credit report for any wrong information and send a dispute letter for anything you don't agree with. There are examples of letters of dispute on the internet. There are 30 days for the credit bureau to look into the claim. If they can't prove the charge is real, they have to take it off your credit report.
Then, look for debt that is no longer valid. There is a time limit on paying back debt. Your credit report can only list redundant debt for a certain amount of time. If you have old debt, you should check with the credit bureau to see if it's time to get rid of it.
People often have old debt on their credit reports and don't know how easy it is to get it taken off.
Having too many open credit accounts can hurt your credit score. Look at the accounts you have and decide which ones are the most important and how long you've had them.
Credit cards that you've had for a long time will do more to improve your score than ones that you just got. This is because having an older credit card gives you a longer credit history. If you decide to close some accounts, close the ones that aren't as old first.
You can also pay down the balance on an older credit card and keep it so you have a long credit history. Get caught up on any late payments that are showing up on your credit report by calling the creditor and offering or asking for a payment plan to get you caught up.
Some credit companies may offer a time to pay back the loan with low or no interest. If you pay those debts on time for a few months, it will show up on your credit report, and a potential lender will see it and take it into account.
Follow the steps above if you need to raise your credit score as soon as possible. If you work hard and stay on task, you will definitely see a difference. Good luck with your plans to clean up.
