When it comes to obtaining a loan, your credit report is one of the most important elements a can be the difference of you receiving the desired money or not. Due to this, you need to know what your credit score is and how to correct any potential problems, if you have any. Once you are able to identify these different issues on the credit report, it is not as difficult as you might believe to correct the errors.
First off, never use one of the credit report services you see on television. These are just scams that are eventually going to charge you money. There is no reason for you to pay for a credit report when you can receive it for free. Instead, the federal government mandates Equifax, Experian, and TransUnion, the three credit companies, give you a free copy of your credit report annually. In order to obtain these credit reports, head over to AnnualCreditReport.com and fill out the information. In general, the three credit reports are usually going to have the same basic information, but you might find a few changes between them. Make sure to look over all of the information in order to identify different issues that might be present.
If you find an issue with the credit score, chances are it is either because you forgot you had something you have not yet paid off, or the company never reported you have paid off the loan or service fee and it is negatively impacting your credit score. Should you find any of these, you need to contact the company who holds the credit and talk the situation over with them. If you already paid it off, you need to request that they contact the credit service providers and inform them that you did pay off the loan. If the loan is actually outstanding and you didn’t realize this, ask how you can go about correcting the situation.
Of course, some companies are not going to want to move quickly in order to correct your credit score. After all, they have other tasks they probably want to complete first, so contacting the credit service providers is not going to be tops on their list. After contacting these companies, you also need to file a report with different credit reporting companies. You can visit each of the credit reporting’s websites (Experian.com, Transunion.com, and Equifax.com) and file a dispute. In this dispute, you write what you believe is inaccurate. You want to include any and all copies of documents that help support this position. You also want to provide the name, address and other information connected to the company that you have paid off. The easier you make it for this company, the faster they can have the errors on your credit report corrected. The credit reporting company must look into the matter within 30 days. This is why it is always important to check out your credit score a few months before going in to request for a loan.