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How to Get Your Credit Score Fixed

By Ruth Racey
Published: Friday, November 27th, 2009

When applying for a home loan or a car loan, you may notice that many lending companies only offer their best deals to customers with good credit.  Understandably, lenders are more confident to extend credit for those who have shown their capability in paying their debts. 

With this in mind, you may want to check your personal credit standing before applying for any type of loan.  Yet, what if you discovered that you credit score is not at all impressive?  Is it possible to get it fixed?  Below are some good tips on improving a low credit score:

First, you need to know the reason why you suffer from a low score.  To do this, order your credit report from the three major credit reporting agencies which are Experian, TransUnion and Equifax.  Ordering a copy of your report from all three agencies will enable you to compare your reports.

If you think there are errors in your report such as charges that you have already paid or charges that you do not recognize; send a letter of dispute to the credit agency that issued your report.  The agency will conduct an investigation about your complaint and if your dispute is a valid one, the errors will be corrected as requested.  The credit agency will inform you about the result of the investigation and send you an updated copy of the report.  The agency that conducted the investigation will also notify the other two credit bureaus to update their own reports.

Nevertheless, only valid errors in the report can be fixed.  If the reason for low rating is the fact that you have a lot of past due balances in your account, there is no way that you can erase those charges.  The only way to improve your credit score is to pay balances and keep up with current payments.

Paying debts can be a big challenge especially if you have already incurred interest rates and late penalty fees for the past months.  What can you do with this situation?  Usually, getting in touch with your creditor is the best option.  Let your creditor know that you are not running away from your payment obligations.

Ask if repayment terms can be adjusted so you can have the chance to pay your debts and rebuild credit without draining your monthly budget.  You can also request your creditor if your interest rate can be lowered and if the late fees can be waived.  Many borrowers were able to reach good negotiations by talking to their creditors and working out a solution.

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