Two Tips for You to Have a Good Credit Score
To get a good credit score the first tip is to pay your bills on time. It does not matter how bad your credit history is you must pay all your bills on time.
The reason is because by paying this month bills on time you will be showing positive payment history. Positive payment history is one of the biggest influences on your credit score.
It also matters how much time has passed between derogatory items on your credit report and when your score is calculated. After an amount of time, allegedly four years, negative items on your credit are not weighed as heavily. Thus it is very important for you to build a positive payment history.
Another tip equally important is to remove any inaccurate or unverifiable items. Our credit system is far from perfect and when mistakes are made your credit will pay the price.
A common reason for inaccurate information to be reported is due to a divorce. A judge will divide the debts and if an ex-spouse defaults on a loan, that they were court ordered to pay, it will still be reported on both of your credit reports.
A lenders mistake is another source of inaccurate information. For example the amount due on a loan changes, however you are never notified and continue to make your regular monthly payments. Yet when you have your credit checked it will be littered with negative marks because you were not paying the full amount.
If you identity is stolen this can be devastating to your credit. Another common source of inaccurate information is credit reporting errors. Thus you need to keep an eye on your credit report if you have a 500 credit score or a 700 score.
All of these listings are inaccurate and will bring your score down. You should dispute them all and have them removed.
The Fair Credit Reporting Act was passed to help you remove these inaccurate listings. This law states that inaccurate information must be removed from your credit report.
To dispute an inaccurate mark you can hire a credit repair service. They will draft a dispute letter and send it to each credit bureau that is reporting the inaccurate listing. Or you can do this compose a letter yourself, however you should know that credit bureaus often do not conduct investigations based on one dispute letter.
It is typical of credit bureaus to respond to a dispute letter by requesting more information. Thus many have found it useful to hire a credit repair firm.
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