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3 Things You Can Do To Improve Your Credit Report

by Clayton Stanley

Buying a brand new car often involves getting a car loan. One thing that the loan agencies will take into consideration when you are getting that loan is what your credit score looks like. The better your credit score, the better the interest rate you will get on your loan. But what happens if your credit score isn't so good? There are some things that you can do to help raise your credit score in order to prepare to get that new car loan. 

Check Your Credit Report

The first thing you should do is actually check your credit report. You need to know what your score is and where any problem spots are. There are three credit reporting agencies and you can get your report from each of them. It is a good idea to get a copy of your report from all of them so that you can compare them to see if there are any mistakes on any of them.

Dispute Mistakes

If there is something that you think is a mistake, you can dispute it. You will need to write a letter to the credit agency in question. You will want to send it by certified mail and receipt request. That will prove that the agency got the letter. They will have to investigate the mistake and get back to you. They will send you a letter with their findings. Do make sure that you keep copies of your letters and any letters you get from the credit agency so that you have a written record of the dispute and the resolution of that dispute. If you get a favorable result, you can request that the credit agency send out a corrected report to anyone who has asked for one in the recent past. 

Don't Open New Credit Accounts

Many people may tell you that opening up a lot of new credit accounts, like store credit cards, will help you build up your credit. However, what loan companies are going to be looking for are accounts that you have had a long time with a good payment history. Lots of brand new accounts won't give you that. 

Working on improving your credit report will help you when it comes to getting a new car loan. There are several things that you can easily do that will help you improve your score so that you can get a better interest rate. To learn more, speak with a business like NCC Direct, Inc.

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