There are many things that factor into your credit score. Some of them affect it negatively more than others. Here are some easy ideas to help raise it up without spending a lot of money and help you if applying for auto loans with bad credit.
Request a copy of your credit report to review- You are entitled to one free copy per year of your credit report. Below is a list of phone numbers and addresses for the three main credit reporting agencies. Simply call or write them to request a copy to be mailed to you or visit one of the many advertised credit report sites for a faster copy.
-Experian
P.O. Box 2104
Allen TX 75013
888-397-3742
-Trans Union
P.O. Box 2000
Chester PA 19022
800-888-4213
-Equifax
P.O. Box 740241
Atlanta GA 30374
800-685-1111
Get any incorrect or outdated info removed- It is very possible for incorrect or outdated information to appear on your credit report. If this happens it can drastically reduce your credit score and hurt your chances for loan approvals. This can also cause you to have to pay higher interest rates. Review you credit report carefully for outdated or incorrect items.
Contact the credit reporting agency that is reporting the incorrect info- They will advise you on any forms you may need to fill out to start the process. Once they have the appropriate information they will conduct their own investigation. Any documentation or proof you have should be sent to them as well this will ensure that it gets resolved quickly. They in turn will contact the creditor in question to verify the accuracy of the account. Any creditor that finds they have made an error in reporting is required by law to update the correct info to the credit reporting agencies within 30 days. If the creditor in question is no longer in business or does not respond the item can be removed from your credit report. Once removed your credit score will be adjusted automatically.
Payoff any credit cards that you can afford to- Having high amounts of revolving credit card debt dramatically reduces your credit score. Search through all your credit cards and payoff those that you can afford to. Start with the smallest balances first, once paid in full contact the creditor and request that the account be closed. Continue this process with all your credit cards and you will start to see your credit scores climb.
Avoid Inquiries to your credit-Every time an entity pulls your credit an inquiry is listed on your credit report. Too many of these inquiries can reduce your credit score because it is an indicator that you have been or are attempting to acquire a lot of new debt.
Avoid filling out lots of online applications for credit cards and be cautious who you give your social security number to. The more times your credit report is pulled the lower your credit score will go. Only apply for credit after careful consideration.
By following these steps you should be able to raise your credit score without incurring any additional debt in the process. Even if you have filed bankruptcy in the past this process still works and remember every little bit helps. Take the time to gather any documentation needed and start the process right away.
