Caleb Brown: Hi! I am Caleb Brown, and I am the member of the Financial Planning Association. I am here to discuss how to repair your credit. Right now, I am going to talk about how to read and correct your credit report. The codes on your credit report refer to the type of credit account. M for mortgage, I for installment loan and R for revolving credit. The numbers on the report represent your payment history. These numbers range from one to nine. One means you are current, nine is terrible and likely means a collection or judgment occurred. Depending on how promptly you have been paying the rating worsens from one to nine. Thirty ,sixty, ninety days late and then the number of times you have paid late. And R4 would refers to a revolving account, visa for instance that had a number of late payments most likely in the last twelve months.
Once you receive your credit report, check it over carefully for errors and outdated information. Although correcting the information costs you nothing. It may require persistence. You can try to correct an error by taking any of the following steps. Follow the instructions on the reports to tell the credit reporting agency and the organization that provided the information to the agency about the mistake.
Telephone the agency about the mistake. Explain the problem in a brief letter. If the agency finds that the information in the report is wrong, then its the creditor's responsibility to notify other major credit reporting agencies of the error, so they can correct their information too.
So those are some strategies to correcting credit report errors. Now let's talk about the steps you need to take to improve your credit.