Pull your credit. Don’t assume that everything on your credit report is accurate, and don’t worry that pulling your own credit will lower your credit score. It won’t. Whether someone has put fraudulent activity on your account, or the credit scoring company’s software has innocently confused you with someone else (both happen!) you need to know ASAP.
Check your credit report for errors - Eight out of ten credit reports have errors that can lower your score. So if you see anything that looks suspicious, dispute it. It’s your right. An error could be as simple as the way your name is reported, or your mailing address or, more importantly, any account–collections, credit card, student loan–that is not being accurately reported by the lender.
Remove all derogatory items - Most people assume that disputing an item on your credit report is a lengthy process or that you need an attorney or even that you have to pay to have inaccurate information removed. Not true on all accounts! Disputing items on your credit report is easy. There are three major ways to do it, each with their pros and cons:
1) You can complete an online form, which sends your dispute through an automated system. But because this is an automated process, your dispute will often come back the next day as validated.
2) You can also dispute by phone, and while there’s nothing wrong with an old-school voice call, you may be in for a long wait only to have the customer service rep enter inaccurate information on your behalf.
3) You can send a dispute by mail, which is generally the most effective way—as long as you handwrite your letter in a color other than black. This will force a real-live human being to read that letter and go through all of the proper steps to validate the debt. Just make sure you note your account number and send it certified mail with signature confirmation.
Ask for a limit increase - This means an increase for an existing credit card, not a new one. By increasing your limits, you’ll increase your credit availability, raising your credit score instantly and often significantly. But just because you’ve increased your credit limit, don’t increase your spending. In fact, you should do the opposite!
Keep credit balances low -If you have credit cards, a car loan or any other type of revolving credit, make sure you lower the balance as much as you can. You will see a significant and immediate jump in your credit score when you pay down revolving debt.
Stop applying for credit - Every store and every website wants you to have their credit card, but filling out those applications can bring your credit score down up to five points each. Resist the temptation!
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