Improve Credit Report
Looking to improve your credit report? There are many things that you can do to make your credit report look better in the short term and the long term. Keeping errors off and maximizing your full credit potential can make your credit report stand out rather than suffer.
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Short term solutions to improving a credit report include going over each credit report received from all three credit reporting agencies with a fine tooth comb to check for errors. Check amounts, dates, and status of all the credit that is being reported. Especially important is to look for open accounts that you haven't had or that are closed and accounts that are showing owing that you know you paid off. Write down each error seen on each report and make out a letter stating that these are errors and need to be removed from your credit file or be proven to be correct as stated. Many times since the time period that the agency will have to "prove" the item correct is so short, it will be removed even if it is correct. This is a good three month strategy to improving a credit report.
Long term solutions to having an improved credit report is making sure that you aren't going over 30% on your credit. What this means is that if you have a card with a $1,000 limit, you are only using $300 of it. Got a card maxxed out and several others with no balance? Disperse them throughout so that the one card isn't so high in balance. Having many cards too close to the limit can show stress and that you not making financial decisions correctly. Never close your oldest card as your credit report and score will use your length of credit history as a base. Closing an old card makes you only have credit back to the next oldest card. It looks better to have a long history. Make all your payments on time and for more than the minimum amount, this also will raise your score. This can take over nine months or more to make a lasting effect on the credit report.
Having to improve credit reports and credit ratings can be a daunting task, but it is well worth all the paperwork and effort in the long run. Cleaning up discrepancies and errors, proving yourself with a long credit history, and making timely payments will slowly raise your score and improve credit rating. This improvement can be helpful in getting a better interest rate, having a better finance option on big ticket items, and will help you get into that home or apartment.
