I find it very simple to tell you that you need to raise your score because of the benefits you will derive from doing so when you are seeking a loan. However, I would be doing half of the job by telling you only the benefits if I do not teach you how you can raise your score.
But are you aware that there are a few practicable yet simple tasks you can perform to put your credit rating in good shape? The talking is done. Here's what you should do.
Get a copy of your report from annualcreditreport.com. The law gives you the right to get a free copy once a year, so you decide when you really need it in order to begin repair work on your score.
You have two good options to fixing your current status. You can consult the services of a repair agency or simply learn how to do the job yourself, which would save you some money but will require you sacrificing your time.
Once you have read your file to know what the reporting agencies have recorded, it is now time to separate the good from the bad. Get a blank paper and write out the damaging accounts in your file. I advise that you rank them according to the extent of damage they can cause you. That is, starting with the most risky one first down to the least dangerous one. Once you are sure you've noted all the sharks in your file then it's time to tighten loose knots.
Write a simple letter to the reporting bureau that listed the negative entry in your report. Use formal English grammar to compose your letter. Tell the credit agency that the negative account entered in your file is not yours and you want them to proceed in investigating it within 30 days.
One important thing you should keep in mind when writing a dispute letter is never to dispute more than one negative entry in one letter.