Credit Bureau Strategies To Improve your Credit Score
February 12, 2011
Credit bureau scores literally dictate our financial lives...and yet most of us have no idea how these scores are affected.
I am going to post a series of blogs on credit bureau in's and out's...here is the first in the series.
There are three major credit bureaus that track and monitor your credit and provide scores to creditors inquiring about you. Those bureaus are:
Equifax
Experian
TransUnion
Most creditors report the status of your account on a monthly basis to all three credit bureaus. Then the credit bureaus gather and process all of this info and provide a "score" (a.k.a FICO score) to anyone who has been given permission (by you) to pull your credit bureau report.
There are two ways that a creditor can obtain your report:
1) a "hard pull" which means you have given a creditor permission to pull your report for the purpose of issuing you credit.
2) a "soft pull" --- most often used by companies wanting to get a quick overview of your credit for the purpose of offering you credit promotions, or used by creditors you already have an account with to "check in" on your credit status.
A hard pull docks points against your credit score.
A soft pull does not.
So if you ever see a formal "inquiry" on your credit bureau that you did not give permission for, you MUST file a dispute to get it removed as it is negatively affecting your overall score.
I am going to post a series of blogs on credit bureau in's and out's...here is the first in the series.
There are three major credit bureaus that track and monitor your credit and provide scores to creditors inquiring about you. Those bureaus are:
Equifax
Experian
TransUnion
Most creditors report the status of your account on a monthly basis to all three credit bureaus. Then the credit bureaus gather and process all of this info and provide a "score" (a.k.a FICO score) to anyone who has been given permission (by you) to pull your credit bureau report.
There are two ways that a creditor can obtain your report:
1) a "hard pull" which means you have given a creditor permission to pull your report for the purpose of issuing you credit.
2) a "soft pull" --- most often used by companies wanting to get a quick overview of your credit for the purpose of offering you credit promotions, or used by creditors you already have an account with to "check in" on your credit status.
A hard pull docks points against your credit score.
A soft pull does not.
So if you ever see a formal "inquiry" on your credit bureau that you did not give permission for, you MUST file a dispute to get it removed as it is negatively affecting your overall score.
Improving your FICO® credit score
It’s important to note that raising your credit score takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. There are several ways you can positively affect your score.
Payment History Tips
- Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score. - If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score. - Be aware that paying off a collection account will not remove it from your
credit report.
It will stay on your report for seven years. - If you are having trouble making ends meet, contact your creditors or see a
legitimate credit counselor.
This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Posted by Debra Fox.
