Even though there are many ways to work on repairing your credit if it has been damaged one of the best and quickest ways is to verify the information on your report is accurate. The task credit reporting agencies have is colossal and makes for many mistakes in reporting. Sometimes other peoples information is included on your report, sometimes the credit bureaus do not remove information when it should be.
Each of the three main credit bureaus, TransUnion, Equifax, and Experian, each have their own methods for gathering credit information on people, as well as their own databases for record keeping. The combination of these factors means that there is an extremely high likelihood of mistakes appearing on a credit report and that it will affect a persons credit rating. These facts along with the sheer volume of information being entered by a high number of people make it virtually impossible to avoid mistakes completely.
On comparing reports from each of the three reporting agencies you will see three different credit scores. A distinct disparity between FICO scores indicates that there is probably a mistake on your credit report that needs to be resolved.
Your ability to borrow and the terms under which you may borrow money are directly impacted by the three different credit scores because they are all important. Despite their different lending protocols, it is common for lenders to use a persons middle score in their decision-making. Because of this it is not enough to just get your credit report if you want to improve your scores. Request reports from all of the Big Three credit reporting agencies and then go through them line by line to determine if there are any mistakes.
Reviewing every line of the report is important because a mistake may not involve the entire entry; it may be just the amount of money reported, the timing of the debt, or how the debt was finalized. One commonly employed measure (used to keep information on your credit report longer) is to report information at an inappropriate time. Also, keep an eye out for incorrect dollar amounts being reported.
Bear in mind that information is being added to your credit report regularly. Verifying the information on your credit report is an ongoing enterprise. However, it is recommended that once a year is enough, or about nine months before applying for a major loan.
Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Their video training is designed to allow consumers to take control of their financial future by learning the insider secrets of credit repair. For more information on credit repair, please visit them on the web. Finance the Dream helps people looking for a rent to own homes take advantage of the $8,000 tax credit.