10 Simple Ways To Improve Your Credit Score

There are plenty of ways to improve your credit score but many take a while to produce results. When consumers are applying for a credit card, mortgage, or personal loan, time is of the essence. Equifax, Experian, and CallCredit, which shares information with U.S. based TransUnion, are the three major credit bureaus in the U.K. and credit score is calculated from data reported by each one. Correcting erroneous negative information is the easiest way to quickly improve the score.

1. Bankruptcies remain on credit reports for ten years. However, they are not always taken off and if an older bankruptcy is still listed, complain to the relevant credit bureau to have it removed. A bankruptcy can substantially decrease a credit score, so do not let it remain any longer than it must under the law.
2. Anyone who has declared bankruptcy in the past should ensure that debts covered by the settlement do not appear as still payable or past due. Bankruptcy wipes these debts clean, allowing the individual to start with a fresh slate. If any of these appear on a credit report, file a dispute form with the credit bureau to have them removed.
3. A legal judgment or lawsuit that has been paid should no longer appear on a credit report. Make sure all paid judgments and lawsuits are removed. Even if the item was not paid, it should not remain on the report for longer than seven years. If a longer period has elapsed, request that the item be removed from the report.
4. A tax lien that is paid remains on the credit report for seven years. One that is unpaid remains for 15 years, which is longer than any other debt. Any liens remaining on the report longer than these periods should be disputed.
5. A late payment should come off a report after seven years. The same holds true for a charge-off, which is a bill written off by a creditor who has given up hope of receiving payment. Identify these items on the report and make sure they are less than seven years old.
6. It is easy for debts to be duplicated, especially when multiple debt collectors have worked the account. Review the reports to make sure the same debts are not listed more than once. If so, request that the duplicates be removed.
7. In some cases, the bad debts of a spouse are not your responsibility. If the person incurred the debt before the date of marriage or after a divorce, the item should not be reflected on your credit report. Proper handling of a divorce filing determines whether this actually happens so investigate any issues and have them resolved.
8. Even if it is good, account information for another person should never appear on your credit report. Some experts may advise to keep any positive items on the report. This may be beneficial right now, but what happens if the person experiences a financial crisis?
9. Though many people consider it unfair, a hard credit report inquiry that takes place when someone applies for credit lowers the credit score. However, it should not remain on the credit report for longer than two years so request that the credit bureaus remove older inquiries.
10. Not all inquiries negatively affect the score. No harm is done when people check their own credit report. Soft inquiries used by banks to offer preapproved credit cards also have no effect. However, a hard inquiry that was unauthorized by the individual should be disputed. Identifying these may require some independent research, which is made easier by keeping a list of credit applied for each year.

Bio: Willie Rhoades is a finance analyst who enjoys writing about UK loans and unsecured loans as well as other personal finance related topics. He has written many articles over the years and enjoys authoring reports offering money saving tips that can easily actioned.