Your credit report is used for obtaining financing for a car, home or credit. It is important that you maintain a good credit report, because you will save money on interest rates. People who have a bad credit rating must pay more money for homes and cars or they are declined. Many corporations also run a credit check for employment opportunities.
Understanding Your Credit Report
It is important that you review your credit report at least once each year. There is no charge for requesting your credit report one time, but if you are turned down for credit, you can request another report free of charge. There are many things you can do to improve your credit report once you obtain it. You can request your credit report online or through the mail.
Update your accounts that have been paid in full or closed to list as many accounts with a positive rating as possible. The three major credit reporting agencies in America include Experian, Equifax and TransUnion. Visit their website to ensure everything is correct such as employment, address and account information. You can also place an alert on your credit report if you have been a victim of identity theft.
You will find in your credit report personal information about you, including your Social Security number, past and current address, past and present mortgages, credit cards, installment agreements, loans and public records, such as liens and bankruptcies. Your credit report will note if accounts are current or past due. It will also indicate whether you have moved without notifying a creditor.
How to Change Your Credit Report
If you find credit or personal information that is not accurate, you will need to dispute them with the help of a credit repair company such as Lexington Law. Some credit reporting agencies allow you to do this online, while others only accept disputes through the mail. Expect to wait a few days for online disputes and several weeks through the mail. When you challenge your credit report, the agency is required to verify the information. If the information cannot be verified, the agency must remove the information from your report.
Be prepared to submit proof of your dispute in the form of credit card receipts or copies of checks that show you paid the debt. Do not dispute more than three items per letter or online request. This will only slow the entire process down and leave you frustrated. Most credit reporting agencies must contact you within 30 days after receiving your letter. Disputing your credit report is your legal right according to the law.
Replacing Good Credit with Bad
If you are patient and persistent, then you can change your credit report from bad to good. It may take some time for bad credit to drop off your credit report, but if you start making good financial decisions, you can greatly improve your credit. If you do not have any debt, then apply for a credit card that you pay off each month. This can help improve your credit report and save you money on future purchases.