There is an abundance of strategies you can deploy in order to get your report fixed and increase your score at the same time. To give you a clear view of how to get a score as high as 740, which is what is required to get the best mortgage loans these days, I have listed a number of tasks you must accomplish to do so.
Check your three reports regularly and make sure you don't have any negative information.
Find any negative account on your file which you must get rid of? All you need do to remove it and improve your rating is to notify the bureau about it using a dispute letter sent via certified mail.
30days is the period during which the bureau is required to get back to you upon receipt of your letter. Failure to do so will be to your favor and should require deletion of the account in dispute.
Find out just how much debt you owe to creditors. Start paying them off now. To cause an immediate improvement in your score you should start out paying the revolving accounts first.
If any debt has been charged-off and gone into collection, then you should consider negotiating with the collector agency to clear it off. Since you're not paying the original creditor, this means that you can pay a fraction of the original amount to the collector. Offering somewhere around 50% of the original debt is a good way to pay it off. Some people actually offer much less – around 20%.
When negotiating with collectors, try getting something in return such as asking the collector to do you a favor by removing the collection on your file, or at least have it replaced with information that shows it is settled.
Begin a complete makeover on your report. You can do-it-yourself using a guide such as a repair-kit. Don't beat yourself if you can't do-it-yourself; you can as well hire a good repair-agency to bail you out.