Improve Your Credit Score And Get Low Rate Loans

2007-03-08 10:33:40

( Financial )



If you are planning to apply for a loan for a house or maybe a car, you might want to check on your credit report first. Your credit report holds the key on whether you’ll get the low rate loans you want or if your loan will even get approved in the first place!



Get Your Updated Credit Report

Whether applying for a loan or not, it is sound practice to obtain your credit report every six months or so. By doing this, you are aware of where you stand in the eyes of the credit reporting agencies. You’ll also be able to check whether it is an accurate depiction of your credit history or if there are inaccuracies or errors. Contact the three credit reporting bureaus and ask for your free credit report. Review it for misstatements and inaccuracies. Common credit report errors involve wrong addresses, records of your payment history, and debt of an ex-spouse that is still linked to you. Even identity fraud is possible. If you see any errors, prepare to dispute them by gathering evidence of their inaccuracies.

Disputing Errors

Write to your creditors and inform them of the inaccuracies. Show concrete proof and evidence. If you are successful in making them change these entries, be sure to ask for a letter of acknowledgment that they indeed corrected it. If not, move on to the credit bureaus. Appeal for an investigation through a letter; include explanation for each dispute and supporting paperwork. Check again after 30 days if there is progress. As soon as changes are made, you will be sent a copy of your updated credit report with a more favorable credit score.

What If I Don’t Have Errors

You can still improve your credit score and improve your chances for approval of low rate loans even with an error-free credit report. How? You can simply dispute all the negative items in your credit report! The law provides that if credit bureaus can’t verify your claims as correct or not within a reasonable amount of time (defined by law as 30 days) they must be deleted from your file. Nonetheless, some items are easier to dispute than others. Late payments that are now paid off, items that are already 2 years or older as well as repossessions are easier to dispute than recent bankruptcies, judgments and tax liens. With some effort and paperwork, you can drastically improve your credit score.

Low rate loans are not as unattainable as you think they are. However you choose to improve your credit score, whether by disputing or simply being a better credit user, keep in mind that you have the power to demand for the rates that you think you deserve!


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