Are you suffering from a low credit score? Then use these 6 ways to build credit and get a good credit score, and quickly!
Keep in mind as you build credit, you must also clean up your credit report of information that is incorrect and damaging. These 2 actions should be taken simultaneously.
6 Ways To Build Credit
1. Create New Positive Accounts
You want to create positive account information on your credit reports. This is done by getting new lines of credit.
2. Use Your New Credit Responsibly
Of course, you must use these new credit lines responsibly. Some good methods are to:
- Finance a purchase
- Get a credit card to build credit
- Even paying your current bills on time
This helps to create a trail of positive payment history on your credit report. Next, we will cover how to clean up credit report information that is questionable or inaccurate. This is one of the fastest ways to rebuild your credit.
3. Check Your Credit Reports
Did you know that 3 in every 4 credit reports contains an error? Of those credit reports containing error, it is said that 25% have a serious enough error to cause denial of credit? It is vitally important that you get a copy of all 3 of your credit reports on a regular basis.
You are entitled to a copy for free from all 3 of the major credit bureaus (Equifax, Experian, and TransUnion). This is according to the Fair Credit Reporting Act. Visit annualcreditreport.com to request your free credit reports.
4. Review All 3 Of Your Credit Reports In Detail
It is important for you to review all 3 of your credit reports. It is common for there to be different information on each of the 3 reports. This happens for a variety of reasons. The most common is a lender will only report your account information to just 1 of the major credit bureaus, and not all 3.
If you are going to get a credit card for rebuilding credit, please be on the lookout for this. Many secured credit cards will claim monthly credit reporting, but only report to 1 of the 3 major credit bureaus. Take the time to double check. You must have your account information reported to all 3 of the credit bureaus in order to effectively build credit.
5. Dispute Questionable Information On Your Credit Report
If you find information that you believe is questionable on your credit report, you can potentially have this information removed. Some common examples of why an item might be considered questionable is because: it has the wrong dates, incorrect balance, account is paid, the account is not your account, and many more.
You are given the right to dispute any item on your credit reports according to the Fair Credit Reporting Act. This law also says that any item the credit bureaus can not verify, must be removed from your credit reports! You can do this yourself or hire a credit repair attorney to do this on your behalf. But you don’t have to just live with bad credit.
6. Talk To Any Open Creditors
Is any of the negative information on your credit reports from creditors your currently doing business with? If so, then ask the creditor to stop reporting that information.
If you have a credit card that has reported a late payment on your credit report. If you still have this credit card open and are using it. Then simply pick up the phone. And ask them to stop reporting the late payment about you!
You see, businesses that your still a customer too are often happy to remove negative information. Especially if they have reported it about you. It will help when you ask this, if you have even a recent history of on-time payments. But worst thing to happen is they say no.
If you follow these 6 surefire ways to build credit, you will be on the fast track to an excellent credit score. If you have made mistakes from the past and have items such as: charge-offs, judgments, foreclosures, debt collections, and other negative items on your credit.
You may be surprised to learn that you don’t have to just live with it. There are strict federal laws and regulations that credit bureaus and lenders have to follow to report information about you on your credit report.
Get more help with a free credit consultation by calling toll-free 1-877-418-7596. And for more tips and strategies with Dan Willis sign up for our free newsletter.
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