This article considers How To Improve Your Credit Report / History. To do any business with any financial institution, you must have a positive credit history. There is hardly anything you can do without a good credit. You need good credit to get a mortgage loan, rent an apartment, buy a car, qualify for a good insurance rate, and sometimes even to get a job.
For those with terrible credit history, you can rebuild a positive credit history so easily.
However, your creditors and lenders have to send updates to the credit bureaus based on your account history. There are three major credit bureaus in the U.S.: Equifax, TransUnion and Experian The creditors report to only one bureau.
How To Improve Your Credit Report / History ; How to build a Positive Credit History
The financial institutions you use their credit cards send monthly accounts updates to credit bureaus. They tell the credit bureaus your current balance, payment history, and other details about your accounts. This information is usually put into your credit report and used to compile your credit score in case you request for it.
It is the above information that helps you build a positive credit history as long as your account details are positive, meaning you’re making timely payments and maintaining a good credit card balance.
How To Improve Your Credit Report / History ; What If You Have No Accounts?
To start building a positive credit history, you need to open an account and get a credit card or loan. And, if you can’t get approved on your own, become somebody’s co applicant or make you an authorized user on one of their credit cards to help boost your credit.
How To Improve Your Credit Report / History ; Some Bills Spoil Your Credit
Even though not all the bills you pay each month gets to credit bureaus regularly. These bills include; your cell phone, cable, and auto insurance payments. However, if you default on these payment for months, they can add them to your credit report and lead to a bad credit score.
To avoid this problem, open up an account and pay the bill on time every month . This will improve your credit score greatly.
Use Your Accounts Responsibly
Carefully avoid late payments on all your bills, high credit card balances, and too many credit card applications. Ensure you pay your annual fees, balance transfer and foreign transaction fees if any.
You may start small. Expect to get only small credit limits and loan amounts, in the beginning, i.e. less than $1,000. Creditors and lenders will give you more credit once you live up to their expectation.
Accounts That Are Inaccurately Reported
If your credit report shows a negative accounts that should be positive, you can use the credit report dispute process to correct it. For instance, your credit report may show that you paid $20 instead of $30 annual fee. To correct credit report errors, you need to send a dispute letter to the credit bureaus citing the error and present a copy of any proof that shows the information is indeed incorrect.
The bureau will investigate and revise your credit report if the investigation supports your claim. Or, follow up with a dispute directly with the business that reported the error.