Understanding Credit and Raising Your Credit Score Is Tough.
Here are some good concepts to know..
Your credit report is crucial, and it can mean the difference between enjoying financial freedom and struggling with bankruptcy. The good news is that there are things that you can do to fix your credit report. One of the major causes of a bad credit score is erroneous, misleading, untimely, unverifiable information. This is usually caused by a faulty credit system and can take years for the problem to solve itself. You have a right to dispute such negative items on your credit report as soon as you notice them.
How to fix a credit report
Statistics show that credit reports of approximately 200+ million Americans have errors. These errors may be as a result of mistaken identities, clerical errors, misunderstandings, and improper accounting. Most of the time, these errors are substantial and can have dire consequences. This means that their credit score is an inaccurate assessment of their actual credit risk, and it needs to be repaired. Fixing a credit report with errors involves repairing the omissions and errors. The key to credit repair is to focus on the root of the problem.. If you want to improve the credit score, managing your credit responsibly will do
Fair Credit reporting Act
This law was written by the Federal Trade Commission Staff in 2006 to protect you from unfair treatment in relation to your credit report. This Act is supposed to be used to benefit the public and not to replace the text in the U.S code. It has followed the format of the U.S code but has minor differences. The law states that the banking system should exercise accuracy and fairness in credit reporting and also use reasonable procedures to gather information, that is, use equitable and fair means to obtain information in relation to accuracy, relevancy, and proper utilization of the gathered information and uphold confidentiality. It also explains in details how the credit reporting process should be carried out, scope, limitations, and everything concerning credit reports.
What constitutes a bad credit score?
WA credit score lower than 560 is usually considered a bad credit score. It can have detrimental effects because potential lenders, employers, landlords, and insurance companies will use your credit history to make key decisions about you. This is why it is necessary to fix and manage your credit report regularly.