EFFECTIVE WAYS TO CHECK YOUR CREDIT SCORE
Are you struggling with your credit score? You’re not alone. Most people in the United States struggle. The good news is that you can increase your credit score. How do you do this?
Check for accurate credit report
The first thing you need to do is check your credit reports. These reports come from the 3 credit Bureaus which are Experian, TransUnion, and Equifax.
Your credit scores are based on the data from these credit reports. Please note that these reports often have errors in them which affect your credit score. The Fair Credit Reporting Act entitles you to a free copy of your credit reports from these agencies once a year. Check the credit reports carefully. It is estimated that 1 in 5 citizens have their reports wrong.
Credit scores operate within 300 and 850. You have excellent credit if you have a score of 750 and above. In every range of 50 that your credit drops, your score drops too. Below 600 gives you bad credit where it becomes difficult to get loans. You can take help from professionals who can help you to check these accurately; like DrCredit. These agencies and individuals are experienced and well equipped with the knowledge to help you.
What are the things that you need to check when you’re checking your credit reports?
- Personal information: Is the personal information in the report accurate? Check details like Social Security number, address, name, and birthdate.
- Credit accounts: This report includes all your credit accounts, make sure that the report reflects all your accounts.
- Payments: Check if all your payments are accurately recorded. There may be payments that you made on time that are recorded as late or missed payments.
- Credit report discrepancies: when you check the 3 reports, there may be different data in them. Check each one separately and note any differences. If there are differences, you’ll need to raise disputes separately with each credit bureau since they operate individually.
Analyze your credit score
Make a note of any transactions that you’ve made. Your credit score could have dropped for a number of other reasons as well. Past debt defaults could still be showing up on your records.
The past history of your credit score is also a determinant. If your accounts are new then it would take time to build your credit score. If you’ve applied to a lot of credit cards at once, creditors wonder if you’ve maxed out all your credit cards. It is not impossible to get loans with horrible credit. Going through consultations with experienced agencies can make planning out your payments much easier.
Plan out your credit so that you can make your payments on time. Only apply for credit that you can pay. Don’t look for quick ways to fix your credit scores. This is a gradual process, take time and build it over an extended period.
Don’t apply for loans till you have the capacity to pay off existing credit.
Fix any late payments and plan your finances accordingly. Set up payment reminders so you can pay on time. Don’t let your past credit score get you down, persevere and endeavor to improve. Apply for secured credit cards. This credit is against collateral so your creditors are assured that you have the capacity to apply for loans.