Justin Hutto

Improve Credit Rating - Two Tips

Two tips to improve your credit rating. How to remove negative credit and build positive credit.

To get a good credit score the first tip is to pay your bills on time. It does not matter how bad your credit history is you must pay all your bills on time.

Doing this will show a positive payment history on your credit. A positive payment history means almost as much as bad credit items, when your credit score is being determined.

It also matters how much time has passed between derogatory items on your credit report and when your score is calculated. After an amount of time, allegedly four years, negative items on your credit are not weighed as heavily. Thus it is very important for you to build a positive payment history.

Another tip equally important is to remove any inaccurate or unverifiable items. Our credit system is far from perfect and when mistakes are made your credit will pay the price.

A common reason for inaccurate information to be reported is due to a divorce. A judge will divide the debts and if an ex-spouse defaults on a loan, that they were court ordered to pay, it will still be reported on both of your credit reports.

When a lender makes a mistake it can result in bad credit for you. An example of this is when the amount due on a loan changes and you are not notified. You continue to make your regular payments yet your credit is being damaged every month. 

Stolen identity and credit reporting errors are common reasons for inaccurate information too. These are just a few examples of how easy your credit can be damaged.

All of these listings are inaccurate and will bring your score down. You should dispute them all and have them removed.

The Fair Credit Reporting Act was passed and is continually amended by congress to help protect your rights. These negative marks are beyond your control and the FCRA was passed for these circumstances.

In order to file a dispute, a dispute letter must be sent to each credit bureau that reports the inaccurate mark. Then the credit bureaus will conduct an investigation and if the listing is found to be inaccurate or unverifiable it will be removed.

They more commonly will respond requesting more information regarding the dispute. So if you have many inaccurate marks either take your time filling disputes and create an organization system or hire a credit repair service.

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