There are a few actions to take when you work to obtain a better credit score. These steps will help you to show future lender’s credit responsibility, Credova and Max Pawn will help you in all these.
- pay your current bills on time – every month, you start to create a positive payment history on all three of your credit reports by paying your current monthly bills on time.
- New rotating credit lines – an unsecured credit card, for instance. The idea is to make a payment to all three credit offices each month to improve your payment history by making payments on time each month.
- Debt settlement – use caution because it could be treacherous. In exchange for a settlement agreement, you must stop reporting your account to all three offices. Furthermore, you should never pay the entire balance due.
Often collecting agencies will purchase your debt on the dollar for just pennies. One popular collection agency in southern Arizona has reportedly purchased 0.025 dollar accounts. This collection agency would have been able to contact you to pay off the debt of $2,000, but only for $50!
- Check your credit – by law, you receive one copy from all three central credit offices each year. It is essential to ensure that your report is checked and reviewed regularly. Experts estimate that up to 25% of all loan reports have an error.
- Discuss your credit – if you have a credit report error or a wrong item like collection, health bill, reimbursement… 5. This item can be challenged and possibly removed immediately.
For that purpose, for example, you must send each office a letter of dispute stating why the item is inaccurate; not my account, debt is older than seven years, account payable, incorrect balance, incorrect dates…
When the office receives your dispute, the item is examined by contacting the lender. You will ask the creditor to check the account, the balance due, and the dates. Under the Fair Credit Reporting Act, the law Congress has passed allows you to dispute any item you believe to be inaccurate and give you a free copy of your credit report.
Three of every four office investigations are estimated to result in removing an item from the loan report. It typically comes from the fact that the lender no longer holds legal debt account collection rights and is unwilling to spend time or hours verifying an account and the details of an office inquiry.
If you can remove the negative items from your credit report and build a positive payment history, you will quickly get an excellent credit score. It is more complicated than ever to obtain credit in this new economy. Lenders have changed their approval requirements dramatically and almost wholly stopped giving individuals fair or bad credit.