Credit Score Repair San Jose CA

Your credit score is one of the most important factors in getting a loan, qualifying for a mortgage on a house, getting financed on a new car, or being approved for a new credit card. Repairing your credit score is essential if you want to be eligible for the best deals available. A high credit score tells lenders that you are reliable, and as a result you will get lower interest rates and better terms. On the other hand, a low credit score labels you as high risk, making lenders more likely to charge you a higher interest rate – if they don’t reject you altogether.

Negative items on your credit report, whether they are accurate or not, can be devastating to your credit report. Many people do not realize that credit bureaus frequently make mistakes in reporting credit information, which then affects innocent people’s scores – in fact, one study in 2004 found that about one in four credit reports contain major errors. If steps are not taken to correct these errors, they can have a significant impact on your ability to get a loan or qualify for a new card.

Even if the negative items are accurate, there is still hope for repairing your credit score. By following the five steps listed below, you can eliminate negative items from your credit report and improve your overall credit score, paving the way to more easily obtained loans and credit cards.

1. Order your credit reports. In order to start repairing your credit score, you will need to contact each of the credit bureaus – Experian, Equifax, and TransUnion – for a copy of your credit report. Make sure you order your report from all three, as the information each contains can be different. For example, if one of them made a mistake on your credit report, that mistake may not be repeated on the other two.

   Some states mandate that the credit bureaus give you a free credit report every year. If your state is not one of those, you may still be eligible for a free credit report if potentially negative items have been reported recently, or if you have recently been denied credit due to your credit score. Otherwise, you will need to pay for your credit report, but the fee is minor if you only order the basic report.

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Author: Tracey Parker