How To Clear a Credit Rating

If your credit rating scores lower than 620, better start clearing it before the immediate need arises. Almost all Americans never clear their credit rating unless they are already applying for a loan and got rejected. If you’re still not at that point, better start to clean your credit rating because it will most likely eat up a lot of time.
The following steps are your ways to clearing a credit rating:

Step 1: Get your credit report from the three credit reporting agencies.

Equifax, TransUnion, and Experian will have different versions of your credit report. Your credit report transpires how well you paid to your landlords, mortgages, credit cards, hospitals, and utilities.

Fortunately, citizens of some states can get their free credit report from each of these three agencies. One person is entitled of one free report per year. Check if your state is eligible for this. Prepare your request in writing and send it to the agencies. Wait for their mail and that will be the time you can review your credit rating.

Step 2: Review your credit rating.

So, are you in good standing or not? The credit report will rate you from 300 to 800. For the creditors, credit-worthy people should have at least 620 score. You are on a brighter side if your score is more than that. It will be easier to get your loans approved at an agreeable rating.

However, people with low credit score need to work harder on improving it. Review your credit report first. Are there any discrepancies? Check every detail because you might be a victim of identity theft. Other people might have applied for a loan under your name without you knowing it. And then, they have messed up, leaving your name with a bad report. Many Americans suffered that and who knows? You might have been one of the victims.

Step 3: Action

If in case there are discrepancies, you better collect pieces of evidence to convince the creditors or the reporting agencies about these.

Even without pieces of evidence, you can ask the agencies to place a fraud alert on your report. With this, they will notify you in case someone is trying to get access on your credit report. This fraud alert will only last for up to 180 days. Request it in writing if you want it to be extended up to seven years.

In other states, freezing the credit report is allowable. With this, no one can see your report besides those who have already seen it.

If there is no suspected identify theft, then you should clear your credit rating on your own. It starts from paying your bills on time, using cash instead of cards, and downsizing your extravagant lifestyle. Think of the best plan also on how you can pay your debts. The creditor will be willing to help you plan if you show them your sincerity and motivation to pay your debts.

Some say that it will take about seven years before one can clear a credit rating. The truth is, it can be that long. But the good news is, it can’t be that long if you start to repair your credit rating as early as now.


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