You are supposed to check your credit reports on a regular basis because they are your credit references to your borrowing activities. Sometimes, lenders make mistakes of putting incorrect information on your credit concerning your payment history and this might affect your credit negatively. So, you have to monitor your credit reports frequently and dispute any negative data. This is something you can do on your own but when you are not sure how to fix credit, feel free to consult a credible credit repair company.
What is contained in a credit report?
Every credit report is different in that it is presented in a unique manner. Basically, this is what you should expect to find.
- Personal information: your name, address, social security number, and employment history
- Type of accounts: loans, credit limits, revolving accounts, joint accounts, debts, collections, and installments.
- Public records: they are about your financial obligations
- Consumer statement: for instance a dispute you might be having with a lender
- Hard inquiries: they reflect on your credit if you have applied for such services as loans or new credit
- Soft inquiries: they represent requests you have made to lenders concerning your credit report. You are the only one who can see this
Areas to pay attention to when auditing your credit report
- Missed payments
Payment history makes up the largest percentage of your credit scores. If you have any past-due loans or a late payment history, your scores will be affected negatively. Some of the most critical payments are mortgage loans. If at all there are incorrect missed payments on your credit report, ensure that you dispute them to save your credit scores. Talk to your lenders to know the reason behind the inconsistencies and always make your payments on time if you want to repair credit fast.
- Credit accounts mix
If you have a variety of credit accounts, it means you have experience on how different types of credit works. In case you have taken a loan or a new credit card recently, make sure that this information appears on your credit report as well as the correct amount of credit you have.
If you didn’t know how to rebuild credit fast, you just learned some important steps for updating your credit report. Good news is that you don’t have to pay a dime if you follow the guidelines. Note that the information on your credit card is reported by financial institutions you deal with. Don’t just focus on fixing your credit but ensure that the information is right. Assessing this information will help you resolve a lot of inaccuracies.