You must come across a lot of advertisements about hiring a Credit Repair company and while that would be the easiest way to do it, you don’t need to spend extra to improve your Credit Score.
You can do it yourself with just a few simple steps. So next time you find yourself thinking of getting a loan and need to manage your credit score for that, just follow these simple steps:
Step 1: Getting your Credit Reports
Make sure you know your rights. According to FACTA you can get a copy of your Credit Report once every year from each Credit Agency. You can either get this from AnnualCreditReport.com or by contacting 1-877-322-8228.
In addition to this, you are also entitled to a free credit report if you are unemployed or if you feel that your credit report contains fraudulent data. In such cases, you can directly get the free copy from the credit reporting companies (read reviews at https://creditrepairxp.com/credit-repair-companies/).
Step 2: Inspect your Credit Report Carefully
So once you have your copy of Credit Report with you, you need to sit down and make a complete inspection of all the data available in your report.
This would ensure that there is no incorrect data and would also help you in planning how to repair your credit score.
You Credit Report will contain a lot of information which includes your personal information, inquiries made, collections, types of accounts, public records and consumer statements of dispute.
You would need to pay special attention to the area which shows your missed payments, your credit history, your credit card usage and your various managing accounts.
These play a major role in your Credit Score and would be the key to repairing your score so scour through this information carefully and keep making notes.
Step 3: Dissent incorrect data
Now comes the important step. If you feel that there is some wrong information noted in your credit report, then you should immediately dispute it.
You can do this by calling the number mentioned on your credit report or using various online apps to do it.
You can also ask the credit bureau to dispute any information on your behalf. You would also need to provide evidence for that so make sure you don’t make any false claims.
Many people think that disputing an incorrect data would affect their score negatively and stay on their report for a longer time but it is all a myth.
Disputing doesn’t decrease your score but it can certainly help in increasing it if your incorrect data gets fixed. So if there are any incorrect dates for missed payments or incorrect amount mentioned, then make sure you this data fixed.
Step 4: Wait for a response or removal of incorrect data
Once you have raised a dispute, you will need to wait for a month in which period the credit bureau will contact the creditor and inform them about the dispute.
If after a month and a half there is no reply from the credit company, then the credit bureau will either close the account or rectify the wrong data on your credit report.
If you are not happy with the result, you can directly contact the creditor and show them the proof that why the data is incorrect.
Step 5: Request a new Credit Report
Once you have received a positive response for your dispute, you need to get a fresh Credit Report and check how much your Credit Score has improved.
But make sure that you wait for at least 4-5 weeks to order a fresh credit report to give your creditor enough time to get the information corrected. Then check in your new Credit Report if it reflects the changes and sees how else you can improve your score.