One of the main purposes of checking your credit score is to review your chances of having a loan approved if you ever decide to get one from established companies (for a great example, look at this site).
Your credit score will also determine the amount of interest that you’re going to add to your repayment of the loan.
The actual checking is quite simple and would not cost you at all.
You just need to familiarize yourself with Transunion, Experian, and Equifax, the three main credit agencies in America.
Getting a copy of your credit score can be as quick as logging on to their website and sending your request online.
To give you an overview, your credit score should not fall under 700 so you won’t have to worry about it that much. The real work comes if you that is not the case, and you need to take steps in improving your credit score.
Analyzing the data is the first thing that you can do so you can see if the statistics in the report contains no error. Sometimes your credit score suffers from wrong calculations or failure to update your credit dealings.
Contact the credit agency where you got your copy and inform them of those errors right away when you find them. Be sure to prepare the necessary documents to validate your claims.
Most of the time, they will ask that you send them through the mail so they can begin working on the problem. If this happens, do not give them the original copies of the said papers. Photocopies of each should suffice.
After knowing the problem, the credit agencies will then start to investigate the issue/s, which includes the particular creditor involved in the error.
If it is proven as such, meaning the creditor cannot dispute the record, then consider yourself free from other hassles, as the said error will automatically be cleared from your credit record, with the bonus of receiving a revised copy with no extra fee.
But you cannot win in all cases.
It may be through neglect or forgetfulness on your part, but the investigation may prove the “error” to be correct. In this situation, it’s up to you to remove them yourself. Things like late payments for other loans or failure to actually pay for it are definitely things that will affect your credit score negatively.
You must do all you can to repay them, like finding ways of earning extra income or asking for help from people who you know can help you.
If you think that the amount is not that much and can warrant a negotiation with the creditor, then maybe you can have an arrangement with them so those issues will not appear on your record. Just be sure to follow their conditions if the negotiation is successful.
You can check after at least one year if all your efforts have paid off. You should see a noteworthy improvement when comparing the current and the previous credit record. Then see if it is enough for you to get a loan without a hitch.
The credit score is something that every person with a credit record should check from time to time. This is a healthy practice to determine whether or not you have been a responsible credit handler, one that can be trusted in credit dealings with financial institutions.