Consumers can sometimes find inaccurate information in their credit report that was reported by lenders. And sometimes this inaccurate information could potentially affect your credit score negatively. In order to initiate the dispute, you will need a copy of your credit report. A credit score is calculated based on your credit payment over time, with more emphasis on recent payments. Here are some free tips to improve your credit score:
Pay your bills on time
Late payments and collection can have a major negative impact on your credit score.
Keep your credit card balances and other revolving debt low
High outstanding debt can impact your credit score negatively.
Only apply for and open new credit accounts when you need them.
A high number of credit inquiries in a short amount of time can lower your credit score.
Think about paying off debt instead of moving it around.
A positive long-term payment history on your credit accounts will be beneficial to your credit score.
There are three credit reporting agencies in the United States
Experian®, Equifax® and TransUnion®. A credit reporting agency gathers information from various providers and supplies credit data on individual consumers. Each credit reporting agency has its own formulas for calculating credit scores.
Companies that supply your credit information to consumer reporting agencies have to follow specific credit reporting rules, as listed under the Federal Fair Credit Reporting Act. The act stipulates who can obtain a copy of your credit report and under what circumstances.
Arm yourself with the basics of consumer credit reporting:
By visiting credit-awareness.com you can request one free report from each of the 3 national credit reporting companies every 12 months. If you have already requested your free report and need additional reports you can visit the credit reporting companies directly, like www.experian.com. There may be an additional fee for credit reports, unless you have been a victim of fraud.