Banks, credit card companies, finance companies, landlords, utility companies or any company considering setting up a line of credit for you looks at your credit score. As a general rule prime credit falls in the 750 – 800 range, sub-prime falls in the 550 – 749 range, and bad is below the 550 level.
Many people hire companies to raise their score but you can do the same thing for free. Type credit repair in the search box and see how many companies provide this service. You can do it yourself.
Here are the basic steps to get you started.
1. Get a copy of your credit report. You can do this for free one time per year by going to www.annualcreditreport.com
2. Check your report for errors. Many times there are errors.
3. Dispute any errors and all bad credit items with the credit bureaus.
There are 3 credit reporting agencies. Experien, Equifax and TransUnion. Start by googling Equifax. Look for the On Line Dispute link. Follow the steps on this site to dispute bad credit items on your report.The companies that have reported sentences, late payments, etc. must then prove to the credit bureau that they are accurate. Many times these companies can not produce the records. If they cant produce the records within 30 days the credit bureau must take it off your report. Keep a calender of who you sent the dispute to and when you made the dispute. Allow 30 days for a response. Be persistent and contact the credit bureau at the end of the 30 day period.
Many people have raised their scores using this approach.