Step 1: Get Your Credit Reports
If you haven’t done so already, the first step in improving your credit
scores is to get a copy of each of your credit reports.
As we’ve mentioned before, the majority of reports have at least one
error, however small.
And if you find something substantial that’s both wrong and negative,
it can help your score leap upward right away. You’re looking for things
like:
- payments that the report shows as late, but which you actually paid on
time;
- accounts that don’t even belong to you;
- debts that you paid off, but which still show an outstanding balance;
and
- charge-offs, late payments and other “black marks” that should
have come off your report by now, if it’s been more than seven years
(or more than 10 years for a bankruptcy).
If you have applied for credit recently and you were turned down, pay close
attention to the reason stated on the rejection letter. By law, lenders must
tell you what piece (or pieces) of information in your credit report triggered
the denial of credit.
This can be a vital clue in turning around your score. And it can be a tip-off
that something is wrong on your credit report.
Next: Step 2 - Pay Bills On Time |
