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ChexSystems is a large association of financial institutions that are all networked together to provide a database of “unwanted customers.” To ensure these backlisted customers don’t get a bank account, these financial institutions report on any customer who demonstrates poor financial management skills, be that failing to repay bank loans, writing bad checks, etc. One way to guarantee your name gets added to this banking “blacklist” is to have your checking account closed down by your bank. If this occurs, you can be certain your name will be added to this list. Once a person find themselves on this list, it’s very very difficult to open a bank account with any financial institution connected to the ChexSystems network for at least five years (at which time, your name will be dropped).
So how can you get out of ChexSystems? Bear in mind, this is a LONG and arduous process. If find MOST people don’t want to go through the effort, but it is certainly possible to get your name dropped from the list if you are willing to fight hard enough. Because of the paperwork involved and legally obligated by law against both your (ex) bank and ChexSystems, you have a pretty good chance of getting your name removed.
Keep in mind that if you are not prepared to fight it out, don’t waste your time and just go with one of the established, easier solutions.
Step 1:
Head over to the OFFICIAL ChexSystems website and request your free copy of the ChexSystems report. This is free. If you find any website out there trying to sell you this report, it’s a flat out SCAM. ChexSystems, by law, is required to send you your report if requested.
Step 2:
Once you receive the report, use the template below (edit it for your personal details), then mail it to the given ChexSystems address. It’s important that you send the letter through CERTIFIED MAIL. You also want to have a return receipt requested. This will leave no doubt that the letter has been received by ChexSystems. Why is this really important? Since ChexSystems functions as a sort of “credit agency” they are by law legally entitled to verify any disputed information within 30 business days, just like credit agencies like Equifax. If they do not comply with this, they must, by law, remove that information from their database.
You will also send off the Bank Dispute Letter at the same time you send the (first) ChexSystems Dispute Letter.
Note Regarding Letters: I’ve given you a rough template. Feel free to edit the letters as you see fit.
I have been notified that (bank name) has submitted to records ChexSystems maintains under my SSN negative information. I see an entry listed from (bank name) regarding a (transaction information listed on ChexSystems report).
I know nothing about this transaction with (name of bank). Please submit verifiable proof of this transaction along with any documentation associated with this transaction that bear my legal signature.
If no such information can be provided, please remove any negative information filed with my SSN under the records you maintain.
[Contact Information]
—————————————-
Step 4:
If ChexSystems sends you a letter within the 30 day period, send the template below. Modify the personal details as you see fit, but keep the general form the same.
ChexSystems Dispute Letter 2: Send if ChexSystems sends you “verified information”
I am sending you this letter that the following financial institution (put in your bank name here) has confirmed that I have a current unpaid debt. However, despite my official request for evidence from ChexSystems of this debt, I have received nothing.
I am therefore again requesting the evidence be mailed to me within 20 business days. I’m also requesting the following information of each person at (bank name) that was contacted regarded my account:
1. Name
2. Address
3. Telephone Number
Furthermore, I would like to be sent official documents that state I am in a legally binding agreement to pay this debt back.
If you do not comply with this request, note that you are breaking the federal code regulating credit reporting agencies (see Federal Trade Comission 15 USC 41). Keep in mind that all communications between both parties will be kept for evidence, should this dispute be taken to a court of law.
Please also note that I will be filing a complaint with the FTC should you fail to comply with my request for evidence, as failure to do so is in direct violation with the federal laws that guide credit reporting agencies.
OPTION 2: CHEXSYTEMS DOES NOT SEND YOU ANY RESPONSE TO FIRST LETTER
ChexSystems NO Reply DisputeLetter
—————————————-
This letter is to inform you that you have not sent any information or proof as to why my name has been added to ChexSystems. As you have not replied within the legally binding 30 day period that guides all federally sanctioned credit agencies, I must presume no such proof is forthcoming or exists.
Please not that you have 30 days from the date of this letter to reply. Any failure on your part to respond will be interpreted as a waiver to all claims on your part. I will expect my name, social security number, and other information added to the ChexSystems records to be in error and consider this matter finished.
I have been sending letters in good faith and it is simply unacceptable on your part not to respond for my legally entitled requests for proof in the matter of this claims being leveled against me. Either provide me with valid, legally binding proof, or remove all information associated with me from your list. By not replying to my last letter, you are in fact violating the Fair Credit Reporting Act and you are liable in court.
Failure to reply within 30 days will result in maximum damages in small claims court regarding identity fraud, defamation, and violation of the Fair Credit Reporting Act. Be assure I will process this claim to the full extent of the law.
You can contact me here
[Your contact information ]
—————————————-
Letter to Bank : Send dispute letter to bank, followed by first dispute letter to chexsystems
—————————————-
[Banking Address]
Subject: Dispute Regarding [dispute details]
This letter is to inform (name of bank) that info (account number) claim (give your claim here) is officially disputed.
Please send me documentation with my signature stating that I legally obligated to pay this claim. Any negative marks made on my credit report (of which ChexSystems is included) for a debt that I don’t owe is a direct violation of the Fair Credit Reporting Act. If you cannot supply evidence that this debt is owed, all negative credit information submitted against my account must be removed.
If you do not supply this evidence within 30 days, legal action against (name of bank) will be taken for violation of the Fair Credit Reporting Act.
[Contact Information]
—————————————-
Step 5:
At this point, you will have either received a letter with “verified proof” from ChexSystems and sent ChexSystems Dispute Letter 2 or you won’t have received anything and send Dispute Letter 3. The key here is that you are getting all the parties to harass each other for information. One of the parties won’t send out the legally required information and you can get your name off the list.
Even if your bank does provide you with indisputable evidence that you owe them money, you failed to pay some debt, or whatever, they are overwhelmed with existing complaints, etc and won’t submit the verified information. You see, banks are required by law to submit to ChexSystems that you have disputed the information submitted from this bank to ChexSystems. But banks never do this due to the sheer volume of other things they are dealing with this. Since they won’t submit this information, they are breaking the law and you have your loophole out.
Yes, it’s confusing so here is another overview of what’s going on. Submit your Bank Dispute Letter via certified mail and as SOON as you find out they’ve received the letter (and you will know because it’s certified mail), you request your ChexSystems report. Look at the report for the notation stating the report/debt has been disputed. If you don’t see the dispute listed, you’ve got them (your bank, not ChexSystems) violating the Fair Credit Reporting Act, Section 623. Since they are in violation, they have to remove records of that debt.
Yes this sounds a bit shady but it’s all perfectly legal. Banks are required to submit this information in a timely fashion, but rely on the fact that 99% of consumers won’t go to this type of effort. Banks simply cannot keep up with such federal deadlines for these type of reports and filings.
So after you get that ChexSystems report and notice the bank has NOT added the note that you have filed the dispute, send out a letter to your bank notifying them of your intent to sue within 30 days unless all records of said bank debt are deleted and your entry removed from ChexSystems.
And here is where it’s win win for you. If the bank hums and haws about the debt and don’t remove the debt and your name from ChexSystems or the bank simply does not reply, go to small claims court. It’s cheap (less than 50 bucks) and in almost every instance that I’ve heard about, after they are served the court date, they’ll settle over phone rather than waste time and money going to court over a few bucks. And lo and behold, if the bank actually does show up in small claims court, you’ll absolutely win since they violated the Fair Credit Reporting Act. I’m not just making this up – my ex girlfriend ended up doing just what I told you here and went to court and won the same way. I’ve also verified this with other people who have done the same and there are some other websites online where a couple other people talk about the same thing. All in all, it works!
As a last resort, if all the other methods don’t meet with success for some reason, take ChexSystems to small claims court directly. I can promise you, big company or not, they don’t want to waste time in small claims court against you. They will settle on the phone, removing your name from the system. In some cases, you may even get a small cash settlement out of them. I have NOT done this myself nor did my ex girlfriend, but I’ve seen this advice given out on the web and I’ve verified it directly with a few people online who have done so.
Conclusion
Even if you have committed some banking mistakes in the past, you shouldn’t have to suffer years of not being able to open a checking account because of ChexSystems. As discussed in this article, there are multiple solutions out there for you to pursue, from opening up an online bank account, to using a prepaid visa card, to finding a non chexsystems bank, to even fighting ChexSystems. The key to getting a bank account without ChexSystems interfering is to be persistent. Whatever you do, DON’T GIVE UP, plenty of people open bank accounts without worrying about having their name in ChexSystems. You can too.
Everyone knows that their credit history impacts their credit score, but let’s explore some of the lesser known numbers that make up your overall score that will be within the range of 300 to 850.
Payment History (35% of your score)
This is what would seem to be the most obvious portion of your score, and it makes up more than one-third, so it is a very important part. Creditors want to know how you have paid your bills historically to gain an idea on how well you will pay your debt to them.
Outstanding Debt (30% of your score)
Creditors want to know how much money you owe other people before they decide whether or not you are a risk.
Length of Credit (15% of your score)
Creditors will tend to look at someone with 40 years of good credit history a little more favorably than someone with only four months of history.
New Credit (10% of your score)
Are you taking out a large number of new loans this month? Creditors will review your new credit activity to make sure that you are not overextending yourself.
Diversification (10% of your score)
Creditors want to know that you have a history of managing different kinds of credit well and will check the diversification of your past and present credit lines.
Understanding all of the elements that impact your credit score can help make you a wise borrower. In lean times improving your credit score is more important than ever.
There is a tremendous amount of misinformation spun into the marketplace regarding a consumer _ s credit reporting rights. Here are 10 of the most prevalent myths.
Myth #1 When I pay off an account, it will no longer be reported or considered to be
negative…. WRONG! Usually it is re-reported and re-aged!
Myth #2 If a negative item is deleted it will just come right back on my report. WRONG!
Myth #3 Certain items like bankruptcies, foreclosures, tax liens, and repossessions are
impossible to remove from a credit report….WRONG! Anything on a Credit File can be changed or removed!
Myth #4 Disputing a credit report is easy and consumers can easily do it themselves.
Wrong! Most consumers get frustrated and give up because of the obstacles put before them by the Credit Bureaus!
Myth #5 The Credit Bureaus will read my 100 word statement and take my side of the story into account… Wrong! If it was that easy then everybody would have good credit!
Myth #6 Credit Bureaus are infallible, a branch of the government, or otherwise beyond reproach… Wrong!
Myth #7 I can get a new credit file by getting a federal tax ID number… Very Big Mistake! This is illegal!
Myth #8 If I build enough good credit; it will offset my bad credit. Wrong!
Myth #9 A credit counseling service can help me restore my credit rating. Wrong!
Myth #10 The law requires that an item remain on my credit report for 7 years. Simply not so!
Today everyone is familiar with credit repair. It is a powerful tool to repair your credit files and improve your credit score substantially. It is possible to repair your credit on your own. But if you do not know the nitty-gritty of the process, then here is a detailed account step by step how to repair credit to the account.
Steps in credit repair
* The first step in credit repair is to seize a global credit report. The free reports are not sufficient for credit repair and often difficult task. So go make a tri-merged report is available at the offices of credit against a fee.
* Examine the report thoroughly and make all the mistakes of controversy. Do not let mistakes, even minor slip your attention. Take your time at the location of all errors and make a list of them.
* Once you have marked all the errors is the time to write a dispute letter. The letter should be brief and to the point. Remember, controversy processors are flooded with thousands of letters every day and only have time to browse through each letter. Therefore, it is vital that your letter addresses the problem directly to greater efficiency.
* Each office uses different systems to identify accounts that are generally a truncated version of his real account number. Referring to the dispute in a private office, be specific about how to use the correct ID number to speed up the process and also for easy reference.
* Do not expect immediate results. A dispute letters are often rejected or returned to requests for more information. There can be no transform faults. You should not lose patience, but re-send the letter. When it comes to credit repair you must persevere until the desired result.
* Remember that credit repair is your money and your financial future. So it’s worth taking the pain and effort to repair your credit report and increase your credit score. It is imperative that you take the real job, and complete.
* If you feel you can not manage the task on your own then get professional help. There are plenty of credit repair companies who serve a minimum charge. Try renting a service company that not only will handle all the credit dispute process but also provide useful tips to increase your credit score effectively
There are plenty of ways you can increase your credit score in 30 days. If you are planning to buy a home or car soon, you will need to get your credit cleaned up so you can qualify for that low interest loan! With a little forsight and due diligence, you can reap giant rewards in the form of a lower mortgage or car payment by qualifying for better loan.
1.Pay down your credit cards – Paying off your installment loans may can help your score, but typically not as dramatically as paying down — or paying off — revolving accounts like credit cards. The FICO model and even (from what we understand) the Vantage scoring system now used by the Big 3 weight credit card debt more heavily. Each individual card as well as your total revolving line should be below 25%. If your goal is to increase your credit score – forget about paying down your high interest rate cards first. Work on getting those balances down over higher interest rates to reap the most improvement in credit score.
2.Don’t use your whole credit line every month – Your available credit is averaged over your billing cycle, which is sometimes less than 30 days. If your limit is say, $5,000 and you charge $5,000, even if you pay it off each month, your credit balance is still going to show $2,500 (a 50% usage limit), which is going to make your score plunge.
For most small business owners, their credit cards are the way they purchase goods and supplies every month. If the card’s limits are used to the hilt – this can hurt. But wait you say, these are business cards. Yes, they are and most small business owners still have to personally guarantee their business cards, which means they show up on personal credit reports. If you need to use all of the available credit line on your cards, you may want to consider getting a new card to spread out the credit lines a little.
3.Is your credit report correctly reporting your credit limits for your cards? If not, you can call your credit card issuer and ask them to update the list. You can also challenge the limits with the credit bureaus.
4.Don’t use credit card issuers who don’t report your credit limit – Usually this is a problem you only run into with secured credit cards, but were you aware that American Express cards and Capital One do not report credit limits? In this case the bureaus typically use your highest balance as a proxy for your credit limit, which is going to make you look like you are maxed out.
5.Ask a trusted friend or family member to add you to one of their old cards as an authorized user – The older your credit history, the better. If your mother agrees to put you as an authorized user on a card that she; had for 20 years, you could see your score increase dramatically. And with the authorized user plan, you don’t even have to have the card in your possession if “Mom” feels better about this plan. (You’ll have to work things out with her on this).
6.Ask a creditor for forgiveness – If you’ve been a good customer for years, but had a rough patch and missed a payment – you might be able to ask your creditor to “erase” a negative listing. You can do this with a goodwill letter. There is no guarantee that a lender will do this, but this method has had lots of success. Here is a sample letter to help you do this.
7.Get student loan payments current – If you have a student loan that you have defaulted on or have missed payments, you can enter into a “rehab program” which will get your account back on track after 12 months (ok, so it’s not a short-term strategy.) Sallie Mae regularly upgrades your loan status to “Paid as Agreed” if you make a series of 12 or so on-time payments.
8.Dispute old negatives – Say your insurance company never paid a medical bill and now you have a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as “not mine.” The older and smaller a collection account, the more likely the collection agency won’t have bothered to update good ole eOscar with the correct info and the credit bureau won’t be able to match up computer records.
9.Get a collection agency to agree to remove a debt from your report if you pay it – This method is called “pay for delete” and it works like a charm on smaller amounts of $500 and under, especially medical collections. Remember to get the agreement in writing before you pay them anything, and only send a money order after you get them to agree. Check here for more info on settling debts.
10.Dispute with original creditor – Our patented method of disputing with original creditors really works, especially accounts which have been purchased by other banks or are currently with a bank who has gone through some of those massive mergers in the last 10 years. And you have the cases (more common than you think) where some banks just don’t keep good records at all. This method is relatively quick.
11.Target “easy” errors – Target the easy errors on your credit report that have a big bang for the buck.
?Negatives that truly are not yours: Late payments, charge-offs, collections
?Any Accounts listed anything other than “current” or “paid as agreed” if you paid on time and in full.
?Accounts that are still listed as unpaid that were included in a bankruptcy.
?Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report.
?Any account that is listed as “Closed by the credit grantor” when it wasn’t should be fixed as this is definitely a negative
You will notice, the first 3 items target paying down credit balances. This is for a reason – high credit balances can kill the credit score of someone who otherwise has perfect credit. It is weighted HEAVILY in your credit score. Get those balances down!
Having just ONE late payment on your credit report can be devastating to you credit scores. Late payments can stay on your credit report for 7 years. However, contrary to popular belief, you do NOT have to wait up to 7 years before being able to get a mortgage, car loan or any other type of credit again.
Read my story below (and check out the photos for proof) to see how you can remove late payments from your credit report.
How I Got Bad Credit
A few years ago, I went through some tough times in my life. I lost my job after the company I worked for went under. The bills piled up and I was unable to make my monthly payments and the payments I Did make were always late. Eventually, all of my credit card accounts were charged-off and sent to collection agencies.
My life became a nightmare of collection calls and endless harassment from debt collectors. Eventually, I filed bankruptcy and was relieved of my debt, but the damage to my credit was already done.
What I Did About It
For years I was denied the chance to own a home, get a new car, or even take a vacation – all because my credit scores were too low for the banks to even consider giving me a loan. Getting turned down for loans over and over was frustrating and embarrassing.
A friend told me about Lexington Law Firm and was ranting and raving about how awesome they were. I was skeptical at first, but after seeing what they did for him, I knew I had to give them a try. So, I got online and looked them up.
My credit scores have drastically improved since there are no longer any negative accounts on my credit report. Here is a snap shot my credit scores from MyFICO since I signed up with Lexington Law:
Client Testimonials:
“I have to admit I was a little skeptical at first, but after seeing what you were able to do with my credit after only a few months, it is very reassuring. Thank you for everything that you are doing for me and please pass on to your staff my appreciation for all of the hard work.”
— T.B., Lexington client
“Thanks for the excellent services you have provided. I would sincerely say that your organization conducted business in the utmost professional manner. I am extremely pleased with the way you worked things out for me. Thanks for the wonderful service. You and your team have a great year ahead!”
— B.P., Lexington client
You can read hundreds of client testimonials and even watch some very inspirational client video testimonials here:
There are any number of mistakes that can be made that will damage your credit – sometimes a little, other times much more. Your credit can be a fragile thing, but knowing what mistakes not to make can save you years of frustration and thousands of dollars. Some of the mistakes on this list are common sense, but others may surprise you. The more you know about your credit, the better you’ll be able to protect and build it.
Closing Credit Cards
Although it may not seem so at first, closing your credit cards is probably the single worst thing you can do to damage your credit, with missing payments very close behind. You see, one of the major factors in determining your credit score is the length of your credit history. Even if you no longer use a particular card, there are several good reasons NOT to close it.
First, they will eventually fall off your report anyway, and in general, you don’t want this to happen. Under federal law, most items can be reported up to seven years after the date of last activity. Use your old cards every few months for small amounts – lunch at the deli, filling your gas tank, etc. Then, make sure to pay them off immediately.
Keeping the cards active also helps your credit score. Part of your credit score is determined by your utilization measurements – in simple terms, how much you use the credit that you have. By using older credit cards, even if it’s infrequently, you’ll actually be bettering your score.
Missing Payments
Missing payments is a little more “common sense” than not closing old credit cards, but even so, many people overlook this one. The reason that missing payments is such a bad idea is fairly obvious as well. The credit bureaus are, for the most part, keeping a record of your credit history. A missed payment – even after the account has been paid, can damage your score for up to seven years.
Also remember that other factors contribute to how much a missed or late payment will affect your credit score. For example, the frequency of missed payments, how recently the payments were missed, and the severity, or how late the payment is. Payments that are missed by a week or two may not affect your score as much as a payment that is 90 days late or more.
Settling on past-due or collection accounts
Settling refers to the practice of a lender accepting a smaller amount than what is owed in order to close the account. For example, if you owe $1,000 on a credit card that is severely past due, the credit card company may accept $500 in payment, and close the file. Although this may seem like a good idea and certainly lowers the overall debt, the lenders usually report the deficiency, which is the difference between the original amount owed and the settlement amount, as a negative item.
As a general rule, balances should be maintained around 30-40% of the available credit limit.
Maintaining high credit card balances
This point is fairly straightforward as well. As a general rule, balances should be maintained around 30-40% of the available credit limit. The closer you get to the available limit, the more this will affect your score, so it’s always best to keep the balances on the low end.
Inquiries
Every time you fill out a credit application and a lender runs your credit, your report is marked with an inquiry, meaning that someone has requested a copy of your credit report. In and of themselves, inquiries aren’t a bad thing. Too many of them can damage your score. You see, the credit bureaus know from statistical studies that people with large numbers of inquiries, on average, are greater credit risks. Keeping the number of inquiries down by applying for credit only when it’s necessary will help to maintain your score.
Believing that all credit scores are the same
There are hundreds of credit bureaus out there, and consequently, just as many or more different types of credit scores. Without going into huge detail, the important thing to know is that the most common score is a determiner of how risky it is to extend credit to someone. The higher the score, the higher the risk. The Fair Isaac Corporation (FICO) provides one of the most common of these credit risk scores. There are any number of websites where you can find your credit score, just make sure what you’re getting (especially if you’re paying for it) is the genuine article.
Believing that all credit scores tell the same story
As mentioned in number 6, above, there are different types of credit scores, or scoring models, and not every credit score tells the story of you as a credit risk. Some of the other scoring models are listed below:
•Insurance risk
Yes, insurance companies use credit scoring to determine how likely you are to file a claim, and lower scores mean higher premiums.
•Response rates
This model is used by the credit industry to determine how likely you are to respond to a pre-approved offer. You thought it was random?
•Revenue potential
This one is used by credit card companies to determine how likely you are to use their card and generate revenue for them.
•Collect ability
As you can probably figure out, this one is used by collection agencies to determine how likely you are to repay your collections.
•Bankruptcy potential
Just what it sounds like. It’s a pretty safe bet that if this score is too high, you won’t be getting credit any time soon.
Not understanding your credit rights
The Federal Fair Credit Reporting Act, or FCRA, was enacted to protect you, the consumer. There’s a lot to it, and you can read the whole thing at www.ftc.gov, but the important points to start with are as follows:
•Permissible Purpose
Your credit file can only be accessed for eight reasons. The two most notable are if you want a copy of your own report, which you’re entitled to once every 12 months, or as part of a legitimate business transaction, meaning you filled out an application and gave a business permission to see your report.
•Right to dispute
There’s a wealth of information available on how to dispute items on your credit report, so I won’t go into too much detail here, but the FCRA gives you the right to dispute anything in your credit report that you feel is inaccurate, misleading, unverifiable or untimely.
•Your right to a free copy of all three of your credit reports
An amendment to the FCRA, the Fair and Accurate Credit Transactions Act (FACTA) allows you to get a free copy of your credit report from each of the three major credit bureaus for free, once every twelve months. You can get your reports online at www.AnnualCreditReport.com, or you can write to the bureaus and request that they send you a copy.
Not knowing that you have three reports and three credit scores
Most people don’t understand that the three major credit bureaus are each private businesses that are run for profit. The three bureaus – Equifax, Experian and TransUnion are competitors. Although they each maintain information on around 250,000,000 consumers, they don’t share information with each other, and this accounts for the discrepancies between the bureaus that are sometimes found. Knowing that there are three separate major bureaus that all maintain information on you independent of one another is important if you need to repair your credit, as the same negative item may be affecting all three bureaus, or it may only be reflected on one report.
Not having credit (or a credit score)
Many people make the choice to use only cash and avoid credit altogether. This is generally not a good idea. You see, because the credit system in our country is designed to determine your credit worthiness, it reflects positively on people who have shown the ability to responsibly manage their credit. Any activity that detracts from this (missing payment, settlements, etc.) will bring your score down, and not using your credit at all can be much worse than a little self-discipline and planning.
Credit is a necessity in society if you wish to obtain a car loan, mortgage, or any type of credit cards. It is important to be aware of what your credit score is and how it will impact your future. There are a few simple steps you can take to help build up your credit and improve your score.
The first step is to analyze your credit report and learn what your score is. You may not have any clue where you stand with creditors and may be surprised by the accuracy of your score. If you know your score then you can negotiate interest rates and be aware of what you are eligible for.
Once you learn your score then you should obtain a detailed copy of your credit report. Make sure there is nothing outstanding on your credit report that you are unaware of. You may be surprised sometimes; there are negative items that you may have forgotten about. Also there may be outstanding accounts on your report that should not be there. There are several ways to dispute these and taking the time to do it can improve your score drastically.
The next step to build your credit should be the reduction of using credit cards or applying for new ones. If the balances you owe begin to reduce and you keep them low then your score will gradually increase over time. Lenders are more likely to lend to someone who does not have a large amount of debt already accumulated. To help improve your score start paying down the balances on outstanding credit cards and wait to open any more.
Another important step to building good credit is to make all of your payments on time. Making payments on time is important because lenders do not like to see late or missed payments. One late payment can severely impact your report and decrease your credit score. If you miss a payment negotiate with the creditor and try to have it erased from your report. Some companies will do this if it is your first offense.
Finally avoid closing any accounts while trying to build up your credit score. Closing accounts can negatively impact your score because creditors want to see open revolving accounts. If too many accounts are closed it may look like you could not handle having them open in the first place. Again this is all the creditors will see and it will have a negative impact on your score.
It is important when building your credit score to take some simple steps to ensure an accurate report and be aware of what your score is. When you make your payments on time and avoid opening any new accounts this will help increase your score. A credit score is a computer generated number based upon your current open credit accounts, past credit history and current open credit accounts. By improving your credit score you can help lower interest rates on your loans and help you become eligible to obtain a mortgage or automobile loan.
