How to Build Credit

How to Repair and Increase Your Credit Score


How to Raise Your Credit Score

You probably already know that your credit report contains important information about your life. It is suggested by many financial advisors that you look over your credit report to find any discrepancies.

This is really important if you are planning on applying for a major purchase. When you check your credit report in advance, you can check if your credit is clean. Cleaning your credit report is one of the best ways of how to raise your credit score.

When you apply for a line of credit or financing, the organization that you are going through will pull your credit report from one of the three major credit reporting bureaus. The cleaner the report, the better.

If for some reason you are not granted credit, insurance, or employment because of the information that a credit agency has given, you have legal right to find out the name of the agency you applied to, their address, and telephone number. You can receive a free copy of your report within 60 days of the denial notice.

If you are wondering how to raise your credit score by fixing your credit report, the remainder of this article will explain what you need to do. First of all, you will want to write to the reporting agency the discrepancy you noticed.

Sending proof of your claim is the best option, but still send a letter. Make sure you include your name and contact information and each item you are disputing. Make sure to be clear about what you want the agency to do, delete or correct.

The agency will then investigate the items in question. They will usually respond within 30 days. Once the information provider obtains notice of a dispute, it will review the information given by the credit reporting agency. If the information provider realizes that your dispute is correct, it will send out information to all three credit reporting agencies.

Credit reporting agencies must also complete information, by showing you are current with your payments, for example. Or if you have an account showing that is not yours it must be deleted.

Once the investigation is complete, you will receive the results and a free copy of your clean credit report. Also, it is to your benefit that your corrected report can be sent to any company or organization that has received your report within the past six months.

Cleaning up your credit report is one of the best ways of how to raise your credit score. Don’t sit back and relax when it comes to your credit report. Ask for it annually so you can check it and double check it for mistakes.


Quick Tip #1 - Be Smart With Credit

Don't purposely put yourself into debt just to build your credit score. It is better to be debt free and have no credit than to go and get a bunch of debt to have a score.


Quick Tip #2 - Bad Credit is Worse Than No Credit

If you want to build credit make sure to do it responsibly. Having a bunch of credit cards and getting behind will make your credit worse than never having a credit card at all.



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