Credit Repair
Your Midlothian Mortgage Group Loan Officer can provide you with helpful information regarding your credit score and together you can develop a plan of action for improving your credit.
Basic suggestions for increasing your credit score include:
Pay your bills on time
Late payments and collections have a severe negative affect on the credit score. If you have late payments in the past, get current and stay current. A long history of on time payments improves your score. Understand that paying off a collection will not remove it from your credit report. Collection accounts are reported for seven years from the date of last activity. If you are paying off an old collection account ask the creditor to mark the account paid without updating the payment history. New activity will cause the collection account to be reported for another seven years.
Balances
Keep balances on revolving accounts (credit cards) low. Balances over 50% of the credit limit have a negative impact on your score. Be cautious about opening new lines of credit as a strategy to decrease your percentage of balance to high credit. A high number of recent inquiries can decrease your score.
Length of Credit History
Accounts that have been open for a long time improve your score, even if you haven't used them in several years. New credit is perceived as more risky than older established credit, even with the same balance.
Check your credit report and correct errors
You should make sure the information in your credit report is correct as it affects your credit score and lenders use this information in making financing decisions. You can request a copy of your credit report from each credit repository. If you notice an error, you should notify the credit repository in writing and provide supporting documentation as applicable. The credit agency must investigate and respond to you within 30 days. If you are applying for a loan and notice incorrect information on your credit report, notify your lender immediately. Small errors may have little to no effect on your score; significant errors however can severely impact your score. If a significant error has been detected and the credit repository notified, your lender may be able to have your credit "rescored". For more information contact your Midlothian Mortgage Group Loan Officer.
To request a copy of your credit report or report errors, contact the appropriate credit agency directly.
Equifax: (800) 685-1111, www.equifax.com
Experian: (888) 397-3742, www.experian.com
TransUnion: (800) 888-4213, www.transunion.com