By: Jerry Rogers
Submitted: 2010-04-02 21:41:33 | Word Count: 557
If you are in the market of buying a big ticket item and you are needing a loan, you really should consider checking your credit score before you do anything.
What are ways anyone can check their credit score? Contacting a credit agency is the proper way to get your credit report. Transunion, Equifax, and Experian are the only credit reporting agencies that give credit reports. People can log in to their site and request a copy which is absolutely free. Your credit score could range from 350 to 750 points and the higher it is, the better. Any score under 700 needs improvement. After you learn your credit score be sure to review it. Check your report for mistakes and when you find the mistakes begin trying to correct them. Call your credit agency immediately if you notice errors and be sure to find any documentation you may have to support your findings. Never send the original copies because if they lose it, you have nothing left to support your claims so send photocopies.
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After your paperwork is sent the credit agency will investigate the errors you reported. After your creditor is challenged by the credit agency about those errors, if the creditor cannot prove their charges, then your credit report will be revised. But if the report is correct, then you will have to take the appropriate steps to remove it. There is a strong possibility that your credit score will go down due to your credit history. If you have unpaid loans or have incurred late payments in your credit card, then you have to pay them. Remember that these things will be in your credit report for the next 7 years while filing for bankruptcy lasts for about ten so you can’t run from it.
You will have to find a way to come up with the money by working overtime, cutting down on your expenses, getting a second job or selling some of your valuables. If you don’t know what to do, it wouldn’t hurt to swallow your pride and ask for help as there are financial advisers that are willing to help you go through this time. If you are not in a bad financial standing then it may be possible to make arrangements with your creditors to pay off those old bills. Just make sure you stick to the bargain because if you fail to do so, don’t expect them to be so generous the next time this happens.
A year later, you can request for a new copy of your credit report to see if the steps you have taken have paid off. If you see a significant improvement versus the year before, you know you are doing something right and you won’t have a problem anymore applying for a loan. Checking your credit score is something people should do regularly by getting a copy from a crediting agency. There are three to choose from and you can get a copy from all three at the same time or every few months. The 3 credit agencies have different ways of calculating credit scores but they all prove whether or not a person has good credit.
