Credit ratings have become more accessible in recent years as many lenders and credit card companies offer the free service. You can also order a credit report to ensure that the information being reported is accurate. But if you don’t check your credit on a regular basis, you could be in trouble when you go to obtain a loan as mistakes and blemishes should be reported immediately. The following are tips on how to repair your credit rating without having to shell out a dime.
Order a Free Report
Falling into debt can ruin your credit rating. It’s even worse for individuals with bad credit and payments that are spiraling out of control. You can stay in touch with your credit picture by checking your FICO score. This crucial score is based on payment history, length of credit, open accounts, credit inquiries and utilization of credit. Mostly performed through your lending institution or credit card company, the FICO score can be a great way to stay on top of your finances each month. You can also call or email the credit reporting company for a copy of your credit report. This will have the most recent information in regards to payments, money owed and any blemishes. Make it a point to look over your credit report to ensure the information being reported is current and up-to-date. Equifax, TransUnion and Experian are credit bureaus where you can obtain your free report. Most consumers are allowed one free credit check per year.
Double Check the Information
A number of things can put you seriously into debt such as a divorce, loss of employment or accident with injuries. Curbing your spending is a proven method that can help you financially recover. If your car is wrecked, completely broken down or no longer runs, companies who make buying any car a breeze can put cash in your hands quickly. This allows you to purchase another vehicle or use the money to pay down your debt. If you need to obtain a loan in the future for a car, mortgage or other purchase, your credit report is going to have the latest information on your accounts. Assess your credit report carefully for any mistakes. This could include the wrong social security number, different address, misspelled name and companies you never heard of. You should also stay alert to incorrect late payments, duplicate listings and balances that are out of date.
Dispute Errors
Having pristine credit without any mistakes is important for a prosperous financial future. But when you find mistakes or errors, it’s important to correct them immediately and not let them fester. You can be fastidious in this pursuit by filing your complaint in writing. You should also try to resolve the issue with the creditor at the heart of the matter. But if you do so, make sure to document the date you called, who you spoke with and any other pertinent information. In today’s world of technology, you may be able to correspond with an account supervisor via email for a speedier resolution to the credit reporting errors. Once the credit bureau has received your complaint, they have 30 days to respond with the necessary information. If they were at fault, the credit bureau will be immediately notified, so they can rectify the situation. But it’s your responsibility to follow-up to ensure the problem will be taken off your credit report.
Avoid Scams
Having good credit is critical to being able to obtain loans. It’s also necessary to open credit card accounts or rent a home or equipment. While tensions can run high as you go through the process of straightening out your poor credit rating, don’t fall victim to scams. Some companies offer their services to aid in the repair. They also charge a fee to straighten out the mess. But with hard work and patience, you can resolve your dispute without spending any money.
A great credit score allows you to do so much in the financial world. It’s a way for you to rent an apartment, qualify for a lower interest rate and obtain a loan. But if your rating is far from stellar, the above tips will help you strengthen your number without having to pay to do so.
