How to Improve Credit Rating

To get a good credit score the first tip is to pay your bills on time. It does not matter how bad your credit history is you should pay all your bills on time.

The reason is because by paying this month bills on time you will be showing positive payment history. Positive payment history is one of the biggest influences on your credit score.

The amount of time that elapses between your last negative mark on your credit and when you are running your credit will determine how heavily negative marks are weighed. It is said that after four years a negative mark losses much of its impact on your credit score. This makes it doubly important to create a positive payment history.

The second tip is to remove any marks that are unverifiable or inaccurate. The credit system in America has many short comings. It is your responsibility to make sure incorrect information is not being reported on your credit report.

A common reason for inaccurate information to be reported is due to a divorce. A judge will divide the debts and if an ex-spouse defaults on a loan, that they were court ordered to pay, it will still be reported on both of your credit reports.

You can also have bad credit due to a lender mistake. It happens all the time, where the amount due changes and due to a mistake on the lenders side you are never notified and keep making your regular payments. Yet the whole time your credit is being ruined with derogatory marks.

Stolen identity and credit reporting errors are common reasons for inaccurate information too. These are just a few examples of how easy your credit can be damaged.

All of these listings are inaccurate and will bring your score down. You should dispute them all and have them removed.

The Fair Credit Reporting Act was passed to help you remove these inaccurate listings. This law states that inaccurate information must be removed from your credit report.

To dispute an inaccurate mark you can hire a credit repair service. They will draft a dispute letter and send it to each credit bureau that is reporting the inaccurate listing. Or you can do this compose a letter yourself, however you should know that credit bureaus often do not conduct investigations based on one dispute letter.

They more commonly will respond requesting more information regarding the dispute. So if you have many inaccurate marks either take your time filling disputes and create an organization system or hire a credit repair service.