Credit is one of the most important assets that an individual must have in today's society. Without credit, a person is illegally to get a loan for a house, car or even have the opportunity of getting employed at most occupations. Therefore, it is extremely important to maintain a high credit rating so that you can take full advantage of life's opportunities. You must always be looking for ways to improve your credit score, or, if you have a good credit score, continue to maintain it.
One of the best ways to improve your credit score on an ongoing basis, is to get your credit report copies from each of the three major credit reporting agencies in the United States: Experian, Equifax and TransUnion. By law, you are able to get each of these reports on an annual basis at no cost.
When you get your credit reports you should look at them very carefully for any inaccurate, outdated or blatantly false information. When you do find information on any of your credit reports that needs to be corrected, you must send a letter to the credit reporting agency indicating which information needs changing and how it should read.
Once you have put the credit reporting agencies on notice by written letter, it is then incumbent upon the credit bureaus to contact the company or companies that have submitted inaccurate data, and rectify the inaccuracy. This correction process must be done in a timely manner, within 30-45 days, or else be disputed data must be expunged from your credit report.
Once you have cleared all three of your credit reports of any inaccurate information, generally you will see an improvement in your credit score within several months. It is then up to you to maintain your good credit rating by paying your bills on time and maintaining a low debt to income ratio.
If the balance on your credit cards is high relative to your income, even if you're paying your monthly card payments on time, the credit card companies will deem you to be a higher risk customer. If you are considered a higher credit risk you will receive a lower credit score.
Maintaining and improving your credit score is your responsibility. One study shows that as many as 70% of all credit reports have some form of inaccurate information that can negatively impact a consumer's credit score. Be vigilant and responsible and your personal credit score will serve you well.