Do you know what your credit score actually is? Most people, when asked, have no clue as to what their score actually is and that there will be differences between the three credit bureaus that each have different criteria for scoring creditworthiness.
These credit reporting agencies, credit bureaus, are Experian, TransUnion, and Equifax. You can get a free credit report once each year or any time you are refused credit based on that credit bureau’s score. Knowing your starting point will help you plan how to reach that 720 score in the six-month period you are reaching for. Here’s a brief outline of what you can do.
First, is there any debt listed that you feel you don’t owe? Did you know that you can dispute debt negatively affecting your credit report? Either use a credit repair service to help you dispute those negative marks or write and post a certified letter requesting their removal to each of the credit bureaus.
Explain why, such as the debt isn’t yours, the dates are wrong, the amount is wrong or any valid reason why it shouldn’t be affecting your credit report. The creditor has 30 days to respond and if they don’t, the credit bureau will remove that item from your report, which will immediately have a positive impact.
Here is an area where many consumers get themselves into more trouble than they are already in. If you randomly start calling all those creditors that are listed on your report trying to set up payments, in full or on a payment plan, it could actually take away points from your score because many will run a hard inquiry!
Some will demand payment in full and others will not be willing to take that mark off your report even when you’ve paid the debt in full. What good will that do you if you are trying to bring your score up to 720?
Finally, many consumers know that getting a credit card can help to begin repairing their credit. Unfortunately, not all credit cards are equal. Make sure that you are qualifying for a credit card that reports as unsecured debt and that this company will submit a report to each of the three credit bureaus.
It would be great if they reported monthly, but don’t settle for a credit card that only reports annually. Look for a minimum report period of quarterly or every three months. Just make sure to read up on how much you can charge without negatively affecting your score and how much you should pay on balances each month. That’s important too!
It really is possible to bring your credit score up anywhere from 100 to 150 points in just half a year but you need to go about it systematically and intelligently. If you are unsure how to proceed, there are credit repair specialists who can help you through the process. With that 720 score, you need never worry about being rejected again!