How To Get Good Credit

The first thing you need to do is make sure that every payment that is due to creditors is made on time. Although a payment is not technically late as long as it is paid within 30 days of its due date, the creditor will charge you a late payment if it is past their due date.

By paying your bills on time starting today it will just be a matter of time before your start getting good credit scores. The more time you have between your current on time payment history and your old late payments the better. Every month your scores will increase.

In the mean time there are several things you can start doing to get good credit.

The first thing you need to do is get a copy of your credit report so you know what is on there and what needs to be fixed.

The first thing you need to check for is errors. Approximately 90% of credit reports contain errors. You need to be looking for stuff that was never yours, late payments that you never made late and anything that shows a balance due that has been paid off.

Once you have found these errors you need to contact each and every creditor and tell them to remove the information. You also need them to send you a letter that it was an error on their part. That way if it does not get removed you can forward a copy of this letter to the credit bureaus and ask them to remove it.

Next you need to start taking care of any collections or judgments that are on your credit report. Most collection companies will settle out for far less than what is owed to them. So put on your negotiating hat and get to it. One word of caution and that is if you pay off a collection it will have a temporary negative effect on your scores. This is because there will be recent activity on a derogatory account.

Another tip which will make your quest of how to get good credit less frustrating is to make sure to have the collection company send you a letter with the agreed upon terms before you give them any money.

If you don’t want to diddle around with calling all these creditors your other option is to dispute everything through the credit bureaus themselves. There is a ton of free information out there that will guide you through this process as well as explaining your rights. It costs nothing to dispute anything on your credit report. All it costs is time and some stamps.

You other option to clean up your credit is to hire a company to do it for you. There are many companies out there that will do this and the fees have quite a range. Many people will tell you that it is ridiculous to pay someone to do this as you can do it yourself. But the question is what is your time worth.

Hopefully this guide has given you some good insight into how to get good credit. Now it is up to you to take action.