Most people do not pay much attention to their credit scores (also called fico scores), until that, they need a loan. When they are rejected it is usually purely based on their fico score. And unfortunately most people don't even know how much they are now. Legally, everyone has the right to one free FICO report per year. Everyone must use this. This allows you to see all items in your FICO report from 3 Main Fico Reporting Agents. If you see the mistakes or the insulting entry you ask, you can take action to delete it.
Here are some simple steps to take if you want to learn how to improve credit score.
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Ask for a copy of your fico report. You can contact one of the three main reporting agents or just search Google to learn how to send your current reports to you.
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Go through the list of all entries in your FICO report and look for an insulting entry (entries that reflect a kind of negative payment activity in your past). This insulting entry reduces your fico score. If you feel that some of these entries are wrong, all you need to do is contact the company that reports the insulting entry and asks them to document it. The good news for consumers is that many companies will not even bother through difficulty documenting entries that are demeaning only because it requires a lot of time and they have better things to do. If the company does not supply a demeaning entry documentation, credit reporting agents must delete entries from your report. This will soon increase your score.
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Every time there are questions made to 3 main reporting agents, if you apply for a loan, for example, or anytime you conduct an investigation that involves borrowing money or buying goods on the payment package, the investigation reduces your score - not much but can increase over time. Excessive questions are an indication to the reporting agent that there may be problems with your financial situation so that they reduce points only because the investigation is carried out. Once again, there will be a list of who made questions, on what date, and there must also be contact information for the company. Contact the company that makes questions and make them document the reasons for the question and provide evidence that you have agreed to that question. If they cannot or will not do this, the credit reporting agent will delete your entry and the score will see an increase.
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Repeat this review process every year and you have to see your fico score remains stable at least and most likely even improve over time. When the economy is in bad conditions, like now, people with low scores (ie 600 or below today), will have many problems borrowing money altogether. If they are lucky enough to be approved for loans, their interest rates will be very high compared to someone with Fico 700 or more.
Conclusion:
You must definitely use all the tools you have and learn as much as possible about how to increase your credit score. In today's economy, with high unemployment and many people underemployed, it is more important than ever to have a good credit score so that you can be approved for loans at reasonable interest rates. It is in your best interest to take the time to learn how to improve credit score.
