Correcting your credit score with these 5 simple steps to fix your credit report has never been easier. When looking for a home, checking on your credit score is an important part of the process. After all, your score will help determine whether or not you are approved for a loan. It will also play a role in calculating your interest rate. The better your score, the better your chances of obtaining a mortgage loan with desirable terms.
Since your credit score is directly affected by the information that is contained within your credit report, the first step in improving your credit score is to make sure your credit report is accurate. Fortunately, the federal government has made it easy to obtain a credit report. In fact, you can get one for free every year by visiting AnnualCreditReport.com. Once you obtain this credit report, be sure to look over the entire report to find any errors or false information.
If your credit report contains incorrect information, experts recommend the following 5 simple steps to fix your credit report:
Step 1: Make Copies of Documents
First, make copies of any documents to support your claim. This might include making a copy of a credit card statement or a letter that you received from a lender. You will include these copies with the letter that you send to the credit reporting companies. Never send the originals.
Step #2: Write a Letter
You must contact the credit reporting company in writing when you are disputing information contained in your report. Your letter should include your complete name and address. It should also include a clear description of the items that you are disputing as well as any facts to back up your claim. Keep a copy of the letter for your records.
Step #3: Send the Letter Through Certified Mail
To help track the process and to ensure your letter is received, send it through certified mail with a return receipt requested. The credit reporting companies have 30 days from the time they receive your letter to investigate the claim and to get back with you regarding their decision.
Step #4: Review Your Amended Report
If the credit company makes changes to your credit report, it must provide you with a letter describing these changes as well as a free copy of your new report. Review this report to ensure the changed information is accurate.
Step #5: Request Notices of Correction
If you have recently applied for a loan and you were turned down or if you otherwise ran into problems because of your erroneous credit report, you can request that the credit reporting companies send notices of corrections to those companies. You can request that these notices be sent to anyone who received a copy of your credit report within the past six months. You can also send these notices to anyone who received a copy of your report within the past two years for employment purposes.
These 5 simple steps to fix your credit report will take a little time to accomplish, so be patient as the end result is well worth the time spent getting your credit report issues resolved.
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