Easy tips to improve your credit rating and common examples of how bad credit happens.
When improving your credit score you need to build positive credit as well as remove negative marks. The easiest way to build positive credit is to pay your monthly bills on time.
This will help you to create a positive payment history. A good payment history is almost as important as removing bad credit items from your report.
In addition you need to remove bad credit items from you report. You can do this by disputing inaccurate items.
It is estimated that 1 in every 4 people have a negative item that is not accurate,
and this is costing them money on higher interest rates. The responsibility of removing these marks fall upon you.
Often a divorce will result in inaccurate negative marks on your credit. During a divorcee the judge will divide the debts between the two parties.
Often one party will not pay their court ordered debts. However these negative marks will be reported on both parties credit report
Frequently the other party will not even be aware of the delinquency until it is too late. They played no part in the delinquency yet their credit will still be damaged. This is an inaccurate mark and when challenged should be removed by the credit bureaus.
In addition lender mistakes are often a result of inaccurate negative listings. Lenders make mistakes too, however you are the one that will pay the price for their mistakes.
It is common for monthly payment amounts to change on debts. However it is also common for the borrowers to not be properly notified. Thus if you continue to make your regular monthly payment your credit will still be reported negatively.
This is a result of you not paying the full amount, even though you were never notified. The lender will report your account negatively month after month and your score will be damaged due to no fault of your own.
This is an inaccurate mark and should be removed when disputed. There are a number of reasons for your credit score to be damaged due to no fault of yours.
The Fair Credit Reporting Act was passed to help protect individuals that find themselves a victim of these circumstances. This law says credit bureaus must investigate disputed marks.
The difficult part will be to get the bureaus to investigate a dispute. Frequently bureaus will respond to a dispute letter by requesting more information about the listing.
I suggest you be patient or you can hire a professional credit repair service. What ever method you choose you do not have to live with bad credit and a low credit score.
