How To Improve Your Credit Score
Most people understand that having a good credit score is essential when purchasing major items like a car or home. The higher your score, the easier it is to obtain a loan—or at least a good loan at an affordable interest rate.Nevertheless, countless people mess up their credit every day due to four key mistakes:
1. Not paying bills on time.
No matter how small the amount or how short the delay, it can seriously harm you.
2. Not knowing your score.
If you think you only need to know when it’s time to make a purchase, you’re wrong.
3. Not knowing how credit scores work.
If you think items are required to stay on your report for 7 years, you’re wrong.
4. Not knowing how to fix it.
Because your credit score CAN be fixed.
According to the US Public Interest Research Group, 79% of credit reports contain errors. Whether they are your fault or because someone else made a mistake doesn’t matter.
These errors cause serious harm to your credit rating, and can cost you thousands of dollars due to higher fees on car loans, home loans, or other credit lines. They can prevent you from getting a new car, owning your own home, or even getting a good credit card with reward offers.
Unfortunately, most people don’t realize that they can easily and legally fix their credit.
For example, say you did pay a bill late. Many assume they just have to deal with having that mark on their credit report for 7 years. This isn’t true.
The Fair Credit Reporting Act (FCRA) actually says that the longest an item can stay on your credit report is 7 years. It’s a time limit; NOT a requirement.
This law is actually designed to protect you, but because credit bureaus are private companies that operate for-profit and are in the business of buying and selling financial gossip about you, they aren’t quick to clean up your record for you.