3 Easy Steps to Improve Your Credit

Whether you are trying to lease an apartment or buy a home, your credit is very important.  The good news is that there are some easy and FREE steps you can take to improve your credit.

1)    The first thing you need to do is to review your credit reports.  There are 3 credit bureaus which collect information about your past credit history.  These 3 bureaus are:

A)   Equifax

B)   Experian

C)   TransUnion

Typically, all 3 credit bureaus will have similar information about you but it is CRITICAL that you review all 3 credit reports to ensure they match and are accurate. 

TIP: Because of the Fair and Accurate Transaction (FACT) Act of 2003, each credit bureau is required to provide you a FREE credit report every 12 months.  You can request your free credit reports from each credit bureau by going to https://www.annualcreditreport.com. 

NOTE:  Please note that the bureaus are required to provide you a credit report every 12 months but are NOT obligated to provide you a credit score.  The credit score is a proprietary scoring system used by each credit bureau.

Unless you really need to know your credit score, I would recommend just getting your free credit reports and ensuring they are accurate.  The following step provides information on disputing any inaccuracies you may find on your credit report.

2)    So, you’ve found some inaccurate information on your credit report.  What now?  Well, there are really 2 basic options:

A)   Contact the lender or creditor directly

B)   Dispute the charge with the appropriate credit bureau

If you have not previously contacted the lender or creditor about the charge then it would be best to go directly to them first.  If you start by going to the credit bureau first, they will then contact the creditor which could possibly prolong the process of correcting any inaccuracies.

If you have previously contacted the lender or creditor and were unable to resolve the issue, then you can log a dispute with the credit bureau.  Each credit bureau has a process for disputing inaccurate information.  Here are the links to dispute inaccurate information:

   A)    Equifax Dispute - http://www.equifax.com/answers/correct-credit-report-errors/en_cp

   B)    Experian Dispute – http://www.experian.com/disputes2/index.html

   C)    TransUnion Dispute – http://www.transunion.com/corporate/personal/creditDisputes.page

3)    So now you’ve reviewed your credit report and made necessary corrections.  What next?  Well, to ensure your credit score continues to improve there are some simple steps to take.

A)   Try to limit the number of new accounts and inquiries.  Almost every time you apply for a new credit card or other line of credit they will check your credit.  This inquiry is logged against your credit report and can negatively affect your credit score.

B)   Pay your bills on time and contact lenders and creditors if you are going to be late.  Sometimes, it may be possible to get an extension to pay which may prevent negative information from hitting your credit report.  It won’t always work, but just by asking you may save some damage to your credit report.

C)  Periodically review your credit reports for inaccuracies (remember, you can obtain FREE credit reports every 12 months using the TIP under step 1).

Good luck improving your credit and hopefully these tips will help you get a step closer to your next apartment, home, or major purchase!

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