Got bad credit and want to improve your credit rating? Don’t worry it is possible. You can either do it step by step and improve it within a matter of years or do nothing and wait for it to get off your credit in seven years. The choice is yours.
Check out your credit report
First, look at your credit report either by mail or online. There are three different main credit report companies, Equifax, Experian and Call Credit. You can even subscribe to watch it every month for a low monthly fee or get it every couple of months. Getting your credit report by mail will cost you a small fee but you can request one for free if you have been denied credit.
If you don’t think you’ll check every month then get the latter of the two. Once you see all the things that are on your credit report start paying them off. The bigger the better, yes you can start small but it’ll only improve your credit in small percentages. The longer an account is open and not paid will only increase in late fees.
The following can be found in your credit report:
Personal Profile which includes your name, Alias, Employer. Your name will be your given name and your alias will be the one that everyone knows you by. Not only will the report show your current employer it will also have your previous employers as well as previous addresses.
Creditor Summary will have a brief listing of all current and past accounts, whether they are opened or closed. You may have revolving accounts, real estate accounts, installment accounts, collection accounts and the total of all accounts. Tthe bottom of your credit summary should show how many open and closed accounts you have, how many public records are out there and the number of inquiries.
Make sure that all the accounts on your report are yours. Many people find out they have accounts that they’ve never even heard of on their credit report. Call the company and dispute it.
Public Records would list any court judgments you’ve had, late child support, tax liens or even bankruptcy.
Account History shows each account you have in full detail. The name of the account, the account number, type of account, its status, monthly payment plan, terms, balance, limits, past due amount (if any), payment status. Your account history will also include the day that your account was opened. Creditors can also post comments on your account.
Each credit report will have a legend to explain everything. To keep your credit in good standing check it periodically, not just once a year. Knowing what’s on your credit can help you. Many people don’t look and realize later that they’ve become victims of identity theft. Don’t let this happen to you, stay on top of things and be very careful with your social security number and any credit cards you may have. If they get stolen report it immediately. Don’t wait a day or two because you think you’ve misplaced them, it’s easier to get a new card then it is to wipe away a bad credit.