If you have a poor credit score, it is time to get in gear. There are many ways to improve your report, but they all take time to heal the injuries. Therefore, it is important to start now, and then you can reap the benefits of good credit sooner than later.
The first step should be to get your most recent credit report from all three reporting agencies, Equifax, Experian and TransUnion. You are entitled to one free report each year, so this is well worth your time. The best place to visit is AnnualCreditReport.com; they will easily process your request for all three agencies in one stop.
Go through each of your reports, looking for errors first. If you find any, take care of those right away. Each agency’s reporting is different so be sure to scrutinize them all carefully. Go directly to the agency to find out their procedure for correcting errors.
Once you feel your reports are clean. It is then worth the cost to get your actual numerical score. You will want to obtain a true FICO score from one of the credit bureaus. The price is usually around $10. The score is a number between 350 and 850 with the higher the better. Most experts recommend ensuring your score is above 720.
Now that you know where you stand, the next step is to get it fixed. Start by creating a basic budget, ensuring that your debt is paid each month first – before you spend any money on luxury items.
If you are in real trouble, it is time to call your creditors. Negotiate for better terms – interest rates and balance due. Then start by paying down the debt with the highest interest rates first. Of course, still ensure you are at least making the minimum payment on all your debts… then throw any extra money at the highest interest rates.
For more tips… come back and read more in tomorrow blog.