Free Credit Report
If you have been turned down for credit in the past because your credit score is low it is a really god idea to get a free credit report to find out just why your credit score is so low. There are a number of ways to get a free credit report without the need to pay any money or give any credit card details.
If you have made a credit application and it has been turned down for credit reasons you are entitled by law to a free copy of the credit report showing the reasons for your credit application denial.
Also everyone by law is entitled to a free credit report from each of the three major credit reporting agencies every year. To get your free credit report from each of the three major credit reporting bureaus go to “annual credit report dot com” and follow the easy steps. You will not receive your credit score as this service has a fee but you will receive online a free credit report from each of the three major bureaus, Equifax, Experian and Trans Union.
Free Credit Report Negative Enteries-Errors
When you download your free credit report you should carefully examine each one for negative entries. These are the information in your credit report that are responsible for your low credit score and you inability to get loans.
When you find a negative entry examine it to see if it is genuine. Credit fraud and identity theft is a common occurrence and there is always the possibility that you are a victim so go through your free credit report with a fine tooth comb to find errors.
If you do find errors contact the credit reporting agency immediately both electronically and by mail. Always keep a copy of correspondence sent to a credit reporting bureau. They are required by law to investigate the correctness of any entry on your credit report that you dispute.
Free Credit Report Negative Entries
A lot of people will find negative entries on their credit report for small sums like an unpaid cell phone charge off or an unpaid utility bill. If you do find a legitimate negative entry on your free credit report for a small sum it is advisable to contact the creditor with a view to settling the outstanding balance and having the negative entry changed to read settled satisfactorily or some other positive wording.
This will have the effect of rising your credit score possibly even into the acceptable or good range.
Credit Score
Credit score or FICO score is a mathematical algorithm which rates the credit of individuals. Every credit score will fall into a numerical range from 300-850 with 300 being the absolu4te worst possible credit score and 850 being the best possible. Generally speaking credit scores below 600 are considered high risk, 620 being the dividing line between good and bad, 640 or above being pretty good, 650 is average , and above 690 or 720 is considered excellent.
The median score in the USA is reported as being 723 which on the surface considering the economy appears staggering. However this is what is reported and should be taken with a grain of salt.
Credit Repair
Other than requesting a free credit report and trying to repair negative entries a useful strategy for credit repair is to take out secured credit cards and other loans that are available to borrowers with bad credit. Some auto dealers will arrange loans for people with bad credit using a buy here pay here formula. The title of the car will not go into the borrowers name until the terms of the loan have been met satisfactorily.
If you are considering using this type of strategy to help you rebuild your credit score it is imperative that you ensure that the lender is going to be reporting your on time payments to the credit reporting bureaus. If your payments are not being reported then this loan will not help rehabilitate your credit score.
So ask question, know what you are getting into and when you do eventually take out a loan remember be responsible, never miss a payment, never be late with a payment, never exceed your limit on a credit or store card.
