How to Fix Your Credit Score?

If you know you are going to need an auto loan or mortgage soon, you are going to want to find out what your credit score is so you know what types of options you have. If you credit score is too low for a loan, there are multiple ways you can quickly fix your credit score in order to get the loan you need at the rate you want. The first thing you want to do before shopping for a loan is to pull your credit report. Take a good look at it to find any discrepancies. Studies show that 1 in 5 credit reports have errors on it that hurt the borrower’s credit score, so look closely.

While the personal information on your credit report is important, chances are it doesn’t effect your credit score. Things such as a wrong apartment number or a misspelling of your previous employer are pretty much irrelevant. The correct spelling of your name and current address, however, is important. If this is incorrect, you could possibly have false information on your credit report . . . information that belongs to another person but has a similar name than yours.

Once you’ve double checked for accurate personal information, the most important thing that can quickly fix your credit score is any false information on delinquent accounts or late payments. Your payment history makes up about 35% of your credit score and has the biggest impact, so you want to make sure this is accurate.

Check to see if there are any credit cards or loans that don’t belong to you. If there are, and they are marked delinquent, you want to get that resolved immediately. Similarly, if you there are late payments posted for accounts that were never actually late, that should be addressed as soon as possible. These are errors that can quickly get resolved and will instantly increase your credit score when removed from your report.

If you find these errors, immediately notify the credit reporting agency. They are obligated by law to contact the lender/creditor and investigate the situation and respond within 90 days. This will get you started, but there are several more things to look for and tricks to instantly improve your credit score.

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