It is regularly the case that a credit score improvement is needed to get a cheap fixed rate mortgage, the best credit card deal or a low interest loan. The banks have tightened their lending criteria in recent years so many people are left wondering what constitutes an acceptable credit score and what they must do to achieve this. A lot depends on how personal finances have been managed as minor issues can be resolved relatively quickly.

Correct Credit Report Errors for an Acceptable Credit Score

The Fair and Accurate Credit Transactions Act gives every American citizen the right to a totally free credit report from Experian, Equifax and TransUnion every 12-months. It is important that all three reports are scrutinized for mistakes as they each one holds different information. The onus is firmly on the individual to identify and correct credit report errors before applying for the cheapest fixed rate mortgage deals. Lenders are unable to tell the difference between bad credit and poor quality data. Things to look for include:

  • Credit that has been paid-off, yet continues to show as active.
  • Items that should have dropped-off a credit report because they are more than 7 years old. In the case of chapter 7 bankruptcy, it is 10-years.
  • Any debt that was paid on time and in full that shows as paid derogatory, settled, or a paid charge-off.
  • A credit limit that shows as being lower than it really. This affects total credit utilization.

It's important to supply the appropriate supporting documentation when challenging the validity of data held by credit reference agencies. Although getting an acceptable credit score can be achieved personally, many people turn to a credit repair attorney to ensure that any corrections are carried out both promptly, efficiently and professionally.