Now I understand that if you don't have the credit score of your dreams or at least a decent one that is, it can be very difficult to obtain the things you need or want in life. Trust me, I have been there, but patience is what I have found to be the best attribute in improving my credit score. Below I will list the steps I personally took to improve my credit score by 150 points in just a few months.
First thing I did was obtained a free credit report from the major credit bureaus, Experian, Transunion, and Equifax, which you can get for free once a year through www.freecreditreport.com. This is a very important step, because you want to find out what is on your credit report and to make sure that it is accurate and everything they have on file is truly yours. It is important to verify that all three credit bureaus are reporting the same information on your report. I have had instances where I would settle an account with a creditor and it would show up on one credit bureau, but not the other. Be very careful and make sure to thoroughly check this.
Now that you've obtained your free report from freecreditreport.com or wherever you chose to get one from, you'll need to review it carefully. You want to look for incorrect information, accounts that are outdated, or accounts that aren't even yours. Once you spot any type of error, you should dispute it with that creditor. Whether you are certain or not, think you have already settled that account, dispute it anyway. The creditor will have 30 days or maybe more to verify whatever it is your disputing and get back to you with results. The best thing about disputing something on your report, is that if the creditor does not respond within the deadline they've been giving, then that account gets deleted from your credit report anyway. So I highly recommend you do that, as it will only help you and not hurt your report in any form.
Once you accomplish and verify everything on your report, which took me literally less then two months to do, you'll need to get any accounts that are delinquent up to date. I understand most of us do not want to talk to creditors or collection agencies and will avoid to at any cost, it is truly not the way to go when trying to improve your credit score. I had to call each creditor that I had any delinquent accounts with, speak with them, and explain that I was willing to settle the account or at least get it current with them. I asked if any available payment options were available to me. You will be surprised to how many creditors will work with you just because they want some type of payment from you. If you can afford it, you should convince the creditor to let you pay a sum that is lower then what you currently owe to settle the debt. Have them submit the account you are settling with to the credit bureaus as paid or settled in full. If you do take this route I recommend having the creditor provide you with something in writing that says if I pay this amount then my account will be paid or settled in full. Ask them to delete any negative remarks that they had previously submitted on your report too. This works with some creditors but not all and is worth a try if you can afford paying them a lump sum of money all at once.
Okay, now that you are almost ready to complete your task of improving your score, you will need to follow these next tips. We really need to work on toning down all your bad habits that got you in the situation you are in right now. You will need to work on making your payments on time all the time. If you think you can't make a payment on time, call your creditor and explain why and ask them for any available options that could assist you in avoiding a late penalty and other fees. Some creditors are willing to work with you, so it doesn't hurt to try. Think about it, if you don't say anything to your creditor, chances are your payment will be late anyway. You'll be hit with late fees and your score will take a negative hit. Avoid using to much of your available credit or maxing out your credit cards. I usually try to at least keep my balance to about a 30% balance to credit ratio on my credit cards. Do not open too many or have to many new inquiries in such a short length of time. Try to use the credit you have already, I would probably recommend applying for less then six credits in a span of a year.
I hope the information I have provided will help you improve you score like it did with me. If you have any tips for improving your credit score that you have used please feel free to educate me on it. I am always looking for ways to improve my credit. Thank you in advance for taking the time to read my blog.
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