Optimizing Your Credit Report

Once you get free credit reports, the next step is taking action to optimize the information they contain. Here are five simple strategies you can use to make your credit report a positive reflection of your financial responsibility.

1. Get free credit reports from each of the three bureaus. Before you begin optimizing your reports, you want to make sure you have all of the information you need. You should have a report from TransUnion, Equifax, and Experian in order to get started. If you sign up for free credit reports on our site, one of our partners can help you secure these documents. Typically, you can view them online or request a physical copy in the mail.

2. Read the reports carefully. Did you know that almost 80% of credit reports have some type of error? Many of these inaccuracies are severe enough to have a detrimental impact on your ability to secure credit, so you want to identify any mistakes right away. Start a list of items you believe are questionable or erroneous and why. Remember that if the derogatory item is accurate and true, there is nothing you can do besides waiting for it to be removed seven years after it appeared.

3. Dispute inaccurate items and keep records of all communication. When you get free credit reports, a dispute form is usually included with your order. You can either use this provided form or draft a letter to the credit bureau yourself. Before you mail these documents to the reporting agency, make copies of everything for your files. Once the bureau receives your dispute, they have 30 days to look into it.

4. Devastate your debt. Receiving your free credit reports will help you identify accounts that you need to focus on paying down as quickly as possible. A good credit rating is impossible to obtain if you have excessive amounts of debt, so work hard on paying your balances off. Target your high-interest debts first by making the maximum payments on these accounts that your budget will allow. You can move on to lower-rate accounts after these are paid off. Remember not to close the account once it's paid off; this will harm your score.

5. Stabilize your credit report. After you get free credit reports, you may notice that some of your accounts (department store, gas, and other credit cards) are not listed on your record. If you have a good payment history with these creditors, ask them to consider reporting your history to the credit bureaus. Similarly, if you have bad credit from late payments or a bankruptcy, don't be afraid to access your credit again. The sooner you begin rebuilding your credit history, the faster your score will improve. For more information, examine what we can offer you.