When you want to start fixing a bad credit file, you should bear in mind that anything that needs attention but is ignored can backfire and ruin the whole repair process. Just think of the fact that you have three versions of credit reports: Experian, Equifax and Transunion. Knowing that your file are three-fold, you should never ignore giving adequate and equal attention to all of them when fixing damages done to your rating.
The three bureaus operate independently in spite of the fact that they function for the same purpose which is to gather reports made by information furnishers of different banks and other lenders and translate it into your score.
When you begin fixing your file, pay attention to all three versions and look out for errors and negative accounts that may have slipped in either by your own making or as a result of an error from either the creditor or the reporting bureau.
What you’ll do once you have all the negatives figured out is to separate the wheat from the chaff. What this means is that you’ll give priority to the most recent of the negatives first because they have more damaging effect on your file. You want to pay attention to the most damaging accounts next. These are entries such as foreclosure, bankruptcy, repossession. You’ll follow that order until you get to the least damaging entry.
However, note that if you have an inquiry or collection that has just been entered into your report recently and you also have a foreclosure, you will be giving preferential attention to the inquiry or collection. This is because their effects will weigh-in on your score significantly compared to a foreclosure that is about 6 or 7 years old on your file whose effect has worn-off greatly.
Once you have the negatives figured out and have classified them according to the intensity of damage they can cause, you should begin fixing them immediately. Use either a restoration kit if you can repair your own file or consult a repair agency.
Learn more about free credit reports from all 3 bureaus and scores to learn more on raising your credit score to get approved for car, home and credit card loans.