Knowing your credit score is one of the most important factors in maintaining good credit. You can either check your score every four or yearly for free. Most credit card companies also offer free FICO score reports. It's a good idea, if you can, to have your credit score checked at least three times per calendar year.
Credit score can be affected by hard inquiries
Although you may not know it, credit scores can be negatively affected by hard inquiries. When a creditor inquires about your credit report, this is called a hard inquiry. These inquiries are often due to an identity theft or mistake and you may not even be aware until they become a significant number. Routine credit monitoring can help to identify errors. You can also send a dispute notice to the credit bureau, along with the proof of the error. You can also contact the lender to dispute the inquiry, and report any fraud to the Federal Trade Commission.
A hard inquiry generally lowers your score by 1-5 points. The exact amount will depend largely on your credit score as well as the length of time since you last inquired. If you are not absolutely required to, it is better to limit the number of inquiries.
When determining your credit score the most important thing is to pay on time
When making your payments on time is an important factor in determining your credit score. This is because late payments can compound and make your debt difficult to pay off. The ratio of your available credit to total debt is another factor. Lenders do not like high credit balances. This is why it is so important to keep credit utilization below 30%. Credit score can be improved by not applying for new credit cards or paying off existing ones.
Your payment history is responsible for 35% your overall credit score. This information reveals if you have paid your bills on time and if you have missed payments. This information is used to help lenders determine if you're likely to make your payments on time. Late payments will hurt your credit score. However if you have a history of making regular payments, your score is likely to be higher.
You can dispute inaccurate information in your credit report
The credit bureaus can be contacted if they believe you have incorrect credit reports. They will investigate the issue and give you a copy. The bureau might not agree with you, and the item will be added to your credit report. There are two options. You can either contact the creditor for clarification or re-dispute it with further information.
You can dispute inaccurate information by writing a dispute letters. It should contain a dispute document and copies supporting documentation. The credit reporting company should receive your dispute letter using the dispute address. It should be sent via certified mail, with a return receipt.
Incorrect information on your credit report can negatively impact your credit score, which can affect your ability to obtain loans or credit cards. Although the process is not complicated, it can be frustrating if you don't get your desired result. It is worth the effort if you are able get an accurate report.