5 Steps to a Better Credit Report

The first step in improving your credit repair is by requesting a copy of your personal credit report from all three credit reporting agencies. The three credit reporting agencies are Transunion, Equifax and Experian. For your free copy of all three reports go to www.annualcreditreport.com where you can get your copies free once a year. The second tip is to dispute any wrong information and update your information including employment history. The third tip is to pay off and close any revolving high interest rate accounts such as credit cards. To many high interest rate open accounts can hurt your credit even if you are staying current on payments. If you have to many open credit accounts you could be turned down for having your finances stretched to their limits or you could be considered to have over extended your credit.

The fourth tip is to stay current on your loans. Late payments, charge offs, slow payments and judgments all adversely effect your credit. Foreclosures and bankruptcy will stay on your credit report for seven long years. There isn't alot one can do about repossessions or bankruptcy once it is on your credit report but as for judgments you can pay them off and it will be reflected on your credit report. If you paid off a bill and it isn't reflected on your credit report send a copy of the receipt to the three credit reporting agencies and ask them to correct it. They don't have to but usually they will do so if you can prove the account was paid. Charge offs can be taken care of by contacting the company owed and explaining way you didn't pay the account when do. Many companies will offer to settle for a fraction of the amount owed but be aware that settling for a lesser amount may still show up negatively on your credit report unless you make sure that as part of the settled amount that the company owed changes the amount reported to reflect the settlement. If you don't follow this example than before you could get credit for a loan the banker may request that you pay off the rest of the previous debt before they will give you a loan.