The three credit bureaus (Equifax, Experian and TransUnion) are the agencies responsible for your credit score. The scoring mechanism is based on the system developed by Fair Isaac. The scoring is directly affected by your credit history listed in your credit report. You cannot predict the outcome of your score because the score is calculated through a complicated algorithm. You can only calculate it if you think like a computer.

To be approved in a loan means you have a good credit score. Credit score is a three digit scoring mechanism those lenders use as a basis in your acceptance in your loan application. The credit score can range from 200 to 850 with the latter being the highest. There is a high chance that you will get accepted in home loans or car loans even if you have the not so good score. This is possible because lenders have secured debts in you. Secure because your loans have the collateral which the lenders can get if you are unable to pay for your debts. In home or auto loans, having a good score of 620 and up or better, 720 will give you a small interest rate as well as the no account verification needed. Most borrowers target the 720 score for this score makes them eligible for all kinds of loan with very minimal interest rates, no verification of account needed and low down payment (for home loans). So you better improve your credit score as quickly as possible.

To improve your credit score in 30 days needs interaction with all credit bureaus and your credit report from them. You can interact with the credit bureaus via phone and Internet. Once you get a copy of your credit report, try to look for derogatory items and immediately remove them from your report. How removal of inaccurate accounts does helps increasing your credit score? In works in two possible ways:

* Erroneous items in your report affect your score. If you dispute negative items in your report, you are taking lawful actions for them to be removed. The Fair Credit Reporting Act states that your creditor has at most 30 days to verify and report back the disputed items. If the item that you dispute is really inaccurate and old, your creditor will report it to the credit bureaus and then it will be deleted. So you must show proofs.

* You have the correct item but it is deleted. The creditor received its payment and do not respond to the dispute of the credit bureaus, hence the item is deleted. This happen frequently in small collections where you disputed and the creditor doesn’t care to prove it. Every small collection that gets deleted can boost your score 20 – 25 points. Creditor who deletes collection items after you pay for it will help you to gain 20 plus points.

In other words, disputing with your creditor about the erroneous facts in your credit report can improve your credit score in 30 days because that is what the law says. So keep on disputing until your creditor gets weary of it and delete any inaccurate items!

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Category: Finances
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