There is no mystery regarding how to improve credit scores. The most predominant credit score in banking and lending is the FICO Score and FICO Scores, like most all credit scores, are based solely on data in the individual’s credit report.
Credit reports hold all the data that contributes to the credit score for an individual. Improve the data in a credit report and the credit score it is based on will also improve. No funny science. But, there are techniques to speed up the process and make short cuts to improve a credit score.
The credit score models evaluate only credit history data. Since this data is the driver of the score, it is important to keep it accurate and improve any weak spots in your credit report. Your credit score will be based on several factors that are found in your credit report, including whether you pay your bills on time, your current debt amount, the types of credit and loans you have, and the length of your credit history.
The key to improving a credit score is to correct inaccurate information at the credit reporting agencies. Mistakes regarding credit histories do occur, in fact inaccurate data regarding individual credit report data is prevalent with the credit reporting agencies.
Fortunately due to consumer pressures and some legislative intervention, each of the credit reporting agencies have set up processes for consumers to correct inaccurate data. And at this point, focus on the term inaccurate.
Of course, consumers that have established good payment histories and credit habits after going through periods of late payments and credit problems will generally see their scores slowly increase. The old school technique of making timely payments should help increase your credit score improve over time.
Credit scores can be increased faster be having accounts in your credit report that are the biggest drag on your credit score removed altogether. That means getting rid of delinquent accounts from your credit report. This is a sure fire means to increase your credit score faster than simply making current debt payments on time.
The tools to remove the negative data in your credit report works because credit reporting agencies have to remove inaccurate data. This doesn’t mean that the credit reporting agency has to remove an entire account if the balance owed on that account is inaccurate, they can simply update the records to reflect the accurate amount. However, they have to investigate the “inaccurate” data.
The fastest way to improve a credit score is to have the credit reporting agencies look into correcting that inaccurate data. The data that drags down your credit score generally contains the date of the account, the balance owed, the payment history and the date it was opened. That leaves a lot of room for potential inaccuracies.
Even if the account for a $3,100.00 collection account is inaccurate for what may be considered minor errors, the account has to be investigated by the credit reporting agency. In the process of the investigation it is common for the creditors to not respond or provide the accurate data and the whole account is subsequently deleted from your credit report.
When a consumer requests an investigation into an inaccuracy, there is no law that states what is considered frivolous. Frivolous investigations are a violation. However, if the date or amount is wrong on the delinquent account, the account is inaccurate. If the amount due is wrong, the account is inaccurate. Send a request to investigate this inaccurate data and you will find that the whole account may be removed because the creditor or collection agency does not provide the accurate data to the credit reporting agency. Of course, it may be corrected as well, but fixing these errors is virtually free.
Furthermore, it is not the consumer’s obligation to clarify which item regarding the account is inaccurate. If it is the amount owed that is inaccurate, it would benefit the consumer to just dispute the account as being inaccurate not the specifics of the error. Let the credit reporting agency and the creditor do their job.
It’s your credit history and your credit score, stand up for your rights and make the credit reporting agencies do their job.