Credit Report

How to Improve Your Credit Report?

Whether you are shopping for a new car, a new home or even applying for a new job, check to make sure that your credit report is in good shape.

A credit report is a valuable and credible piece of reference used to assess your financial standing and credibility. And when your financial reputation can be summarized by three numbers, it’s essential that you show responsibility towards payments, bills and credit transaction to ensure that you are able to maintain a good rating.

If you’re wondering why then read on below to find out why you should work to boost your credit score and maintain the accuracy of your credit report:

• Why do you have to regularly monitor your credit report?

The only sure way you can learn about your credit standing is by getting a copy of your credit file. Credit agencies are kept up to date about your financial history from lenders and creditors. The three main credit bureaus—Experian, Equifax and TransUnion, are all equipped with the details about how you manage your credit. You can ask for these agencies to give you a copy of your free annual credit report, which you can now review and assess for inaccuracies and errors.

Your credit scores are the result of your financial habits as an individual. Low scores are a result of late payments, high debt to income ration and frequently going over your credit card’s credit limit. All your details are gathered and calculated by the biggest agencies to generate the scores and a routing credit check is advised by financial gurus to ensure that your creditors are given accurate and error-free copies of your financial history.

• Why accuracy results in a good credit score?

Credit scores fluctuate and change depending on your financial activity. Lenders and creditors provide the information that becomes the source of updating bureaus. All is well and good if the details that they provide are accurate, but as such information is very prone to human error, it is advisable to keep a documented record of your financial transactions so you have something to compare your credit report against when you do your annual review. Errors and inaccuracies can lead to lower credit grades and the wrong information.

Should you find errors or inconsistencies, you should immediately raise it and correct it by drafting a letter that points out the inaccuracy. Remember to support your complaint with proper documentation.

• Why maintain good saving habits?

You can ruin your credit image by constantly deleting credit accounts, which also pulls down your credit score. An individual can portray financial stability by good management of accounts and also through good saving habits.


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