How to fix a bad credit report

Bad credit score has denied about six million people jobs around the globe. According to the report that was compiled by the Debt Advisory Center, three million, two million and one million people have failed to get mobile contracts, rental agreements and car insurance respectively because of their poor credit history.

That is not enough. Landlords and employers are now using credit score history before accepting anyone in their areas of service. For this reason, it is recommended that you should check your credit score and take significant steps to better it. Otherwise, soon you will be among the unlucky six million people who are shortlisted with a bad credit history. Let’s have a look at the credit score report and what you must know;

Credit report definition

This is a record that contains all your financial records. Talk of borrowing history, current accounts record and other public information. People use the report to access you before they strike a deal with you. Credit reports are provided by CallCredit, Equifax and Experian.

Details of the credit report

· Your name and your address.

· Your credit account details such as credit cards and bank accounts.

· Details on how you pay your bills. This shows whether you pay on time, in time or late.

· A record on how you have making your payments up to date.

· A record showing the amount you have borrowed in the past and your outstanding balances.

· The duration you have had your accounts open.

· A record showing whether you are on an electoral roll.

· A record showing whether you have been declared bankrupt in within the last six years.

· The number of addresses that you have. Do you vary your addresses?

· All names that you have used in the past.

· Your financial associates.

Where credit reports are used

The trend of checking credit reports is up and running. This is to prove whether you can be trusted or not. Some of the people that check credit reports include; landlords, employers, mobile phone providers, insurers, broadband providers and credit providers among many others. Think of how difficult life can be if you are denied access by all these people. I think life will be unbearable. For this reason, you should struggle to maintain your credit score at par.

How to check your credit report

As we had seen earlier, there are three recognized credit providers. If you want to know your credit report, you can choose any of the providers. It is important to note that checking is done for free. However, Equifax and Experian gives you a 30 day free period to check for your credit status whereas CallCredit gives you’re an unlimited access service; free for a lifetime.

You can also use the statutory right to check your report. This will only cost you £2 and you will receive your credit report. It is important to check your report regularly to see where you are placed and correct any errors which may cost you in the end.

 

How to correct errors on your credit report

It is possible to have errors on your credit report though it rarely happens. Once you get your report, it is prudent to check whether there are incorrect records. If you realize any error, never hesitate to reach the provider for assistance. The provider will investigate the error and appropriate changes will be made as soon as possible.

When notifying your provider about the error, a note will appear and you will explain what the error is all about. Errors may limit your credit worthiness to lenders. Never ignore them!

How to improve your credit report score

Having different addresses and many credit accounts has contributed to bad credits scores among many people. If you want to improve your credit score your should;

· Ensure that you use a stable address in all your transactions.

· Ensure that you pay back borrowed money in time and you clear all the outstanding balances within the specified period.

· Maintain the few credit accounts that you have. Being a customer of different credit accounts within a short period will lead to a bad credit score.

· Correct all errors in your credit report.

· Shut down accounts that are not used. You may also close those accounts that are least used.