Claire Hendley asked:
Is bad credit ruining your life? You may be surprised at the number of ways having bad credit can haunt you. In addition to not being able to qualify for loans, paying sky high interest rates, and not being able to get a cell phone contract, having bad credit can even ruin your chance of getting your next job.
So what can you do about it?
In this article, I’m going to give you 5 ways to quickly improve your credit score.
First, get a copy of your credit report from all three bureaus (Equifax, Experian, and TransUnion). Some people only get a copy of one and this is not sufficient because there may be different information on the different report. Scan your credit reports. Are there any mistakes? If there are, you should write a letter to the credit bureau reporting them.
Second, check if there are any duplicate entries. If something is on your credit report twice, it can hurt you. So, if the same credit card is listed twice, get this cleared up.
Third, consider challenging older and smaller amounts – even if they are correct. When you challenge a negative mark, the creditor is required to prove they are legitimate. If they cannot do this (because the records have been lost as often happens when debts are bought) or don’t think it’s worth the trouble (because the charge is so small), then you essentially get a “free pass” for the cost of writing a letter.
Okay, that’s it for the credit report, but I’ve got two more strategies that can help you repair your credit.
Fourth, go to your bank and get a line of credit secured by your savings account. Arrange for automatic payments from your savings.
Finally, pay your bills on time from here on out. Okay, I know it’s not sexy. But the best way to establish credit over the long run is to responsibly manage your credit.
Mary
Is bad credit ruining your life? You may be surprised at the number of ways having bad credit can haunt you. In addition to not being able to qualify for loans, paying sky high interest rates, and not being able to get a cell phone contract, having bad credit can even ruin your chance of getting your next job.
So what can you do about it?
In this article, I’m going to give you 5 ways to quickly improve your credit score.
First, get a copy of your credit report from all three bureaus (Equifax, Experian, and TransUnion). Some people only get a copy of one and this is not sufficient because there may be different information on the different report. Scan your credit reports. Are there any mistakes? If there are, you should write a letter to the credit bureau reporting them.
Second, check if there are any duplicate entries. If something is on your credit report twice, it can hurt you. So, if the same credit card is listed twice, get this cleared up.
Third, consider challenging older and smaller amounts – even if they are correct. When you challenge a negative mark, the creditor is required to prove they are legitimate. If they cannot do this (because the records have been lost as often happens when debts are bought) or don’t think it’s worth the trouble (because the charge is so small), then you essentially get a “free pass” for the cost of writing a letter.
Okay, that’s it for the credit report, but I’ve got two more strategies that can help you repair your credit.
Fourth, go to your bank and get a line of credit secured by your savings account. Arrange for automatic payments from your savings.
Finally, pay your bills on time from here on out. Okay, I know it’s not sexy. But the best way to establish credit over the long run is to responsibly manage your credit.
Mary
