Understanding Credit Scores

What You Should Know About Your Credit Scores That You Don’t!

The following steps will assist you if you plan to try and cure your debt problem alone without the help from any professional debt managing company. With these tips you’ll be able to obtain emergency bad credit loans whenever you want. Did you know that all credit bureaus are required by law to investigate a credit reporting dispute? Here is the criteria for receiving a free credit report as well as instructions on how to file a dispute on the websites of: Transunion, Experian and Equifax. The federal government will allow a FREE credit report every 12 months. Just visit their website. The report is free but if you want your FICO scores included, that will cost you an extra few bucks but it’s chump change less than $25 dollars.

How to improve your credit score

Remember, like in baseball, you can’t tell the players without a scorecard, you won’t know what’s in your credit history if you don’t have an updated copy, so get yours now so you can begin taking the steps to sanity.

Step #1 – Request your credit report. You’ll have three choices from the companies noted above, but Equifax is usually the most reliable.

Step #2 – Thoroughly analyze your credit history for mistakes and inaccuracies. If you dispute anything you spot as incorrect or incomplete, make three copies of your credit report to include with your “dispute” letter to each of the reporting agencies.

Step #3 – When you send your letter of dispute to each company, make a strong request to have the errors, or incomplete information removed forthwith. If you can, include in your letters as much info as you can concerning the dispute and the company or business who filed the claim in the first place. If you were or are still dealing with a collection agency but that debt has been satisfied send proof and have it properly recognized as such.

Step #4 – If you have more than three credit cards and wish to close several of them, don’t do it. Leave all unused credit card accounts OPEN. Generally, closing them lowers your FICO score.
Finally, when managing personal debt, if you plan on getting loans of any kind; personal or otherwise, here are the rules the “money person” will follow:

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  • 750 to 840 – Excellent
  • 650 to 749 – Good
  • 620 to 659 – fair
  • 340 to 619 – poor

Ergo, the lower the score, the higher the interest rate. That said, you don’t need a masters degree to recognize that repairing your credit will, in the long term, save you a ton of money on the purchase of a home, car or any other type of major purchase. You can really do all this if you’re a dedicated survivor.