The question “How to raise your FICO score?” is probably asked by many people in the mortgage industry. Here are three of the most important steps you can take to increase your score:
Pulling your credit report. This may seem like a time-consuming task. However, it is vital. It will help you determine whether or not you are reporting incorrect information, which will affect your FICO score.
Identifying identity theft. This can be done with the use of a special credit repair tool. Once you’ve removed any erroneous entries from your credit report, you should then contact the credit bureau that reported the data. Be prepared to provide proof of identity theft, such as your police records, police reports, etc.
Identifying and resolving collection accounts. As well as identifying what credit information was incorrect, you should also look into the details of the account itself. Try to contact the person who issued the credit account and try to sort out any issues from your end.
A one-page report is the minimum that can be expected from financial institutions. Keep in mind that it is not necessarily the most accurate representation of your FICO score. Some bureaus will publish an accurate report and you’ll find yourself with a FICO score that is lower than it would have been had you only supplied the lender with the required information.
The third step on this list, identifying identity theft, is also crucial. If you have been attacked, there is a chance that a third party has been using your personal information for their own gain. Your credit rating can be dented because of this attack, so take steps to protect yourself and your financial institution. Your credit rating is not a gift that you receive as a child – it is a means to an end and you must take steps to ensure that your credit rating remains intact.
Each time you file a dispute, a copy of your dispute letter is placed on the record for review by the credit bureau that reported the credit accounts. Credit bureaus charge a small fee to verify the dispute and then forward it on to the wrongdoer. It is recommended that you re-file all disputes within 30 days of receiving them from your lender.
In addition to taking these steps to raise your FICO score, it is recommended that you regularly monitor your credit. You need to be sure that your credit is reporting the correct information to your creditors and that any errors are being corrected on a timely basis. With proper monitoring, you will notice that your credit is improving and if you follow the above steps, you will be able to raise your FICO score with relative ease.