How to Fix Credit

How to Fix Your Credit Score

Executive summary about Fix Credit by Ryan J. Taylor

If your credit score is too low for a loan, there are multiple ways you can quickly fix your credit score in order to get the loan you need at the rate you want.

The first thing you want to do before shopping for a loan is to pull your credit report. Studies show that 1 in 5 credit reports have errors on it that hurt the borrower’s credit score, so look closely.

While the personal information on your credit report is important, chances are it doesn’t effect your credit score. The correct spelling of your name and current address, however, is important. Once you’ve double checked for accurate personal information, the most important thing that can quickly fix your credit score is any false information on delinquent accounts or late payments. Your payment history makes up about 35% of your credit score and has the biggest impact, so you want to make sure this is accurate.

Check to see if there are any credit cards or loans that don’t belong to you. If you find these errors, immediately notify the credit reporting agency.

Fix Credit Report Errors

Unfortunately, chances are there are errors on your credit report that are significant enough to hurt your credit in a way that would not allow you to get a favorable loan. Studies show that 1 in 4 credit reports have false information, but there are ways to quickly fix credit report errors.

Get a copy of your credit report. By law, the three credit reporting agencies are required to give you one free copy of your report once a year. You can always purchase a copy of your credit report later if needed.

Once you receive your credit report, you simply want to look for errors, particularly the negative errors. Look for:

• Open accounts that are not yours
• Notices of delinquent payments that have been on time
• The same loan or credit card listed twice
• The absence of a loan or credit card

You also want to double check that your name, birth date, current address and social security number is accurate. Some wrong information, however, is not necessarily a big deal. If you find an error, notify the credit agency immediately.