A 620 Credit Rating Isn't Enough Anymore
- By Stuart Hunter
- Published 09/4/2009
- Finances
- Unrated
Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports.
View all articles by Stuart Hunter
Today's economic climate amplifies the importance of cleaning your credit report, especially when the best rates for mortgage loans are mainly available to borrowers with a credit score of 750 or higher.
In the past a credit score of 620 was considered good and anything above 700 excellent; today's threshold for a good credit score is above 700 and an excellent score is even higher. Keeping up with the increasing standards of lenders leaves many Americans looking for a way to raise their scores.
The first step to clean your credit reports is to order a copy of your credit report from all three major credit bureaus: Trans Union, Equifax, and Experian. You are entitled to a free copy of your credit report from each credit reporting agency once a year. Take time to thoroughly look through each report and not rely on your credit report from just one credit bureau, as a mistake or incorrect listings could appear on just one report, and each report does not always report the same data.
After examining each report and noting the damaging items you feel are incorrect or inaccurate, you can write a credit dispute letter to each credit bureau disputing
the item, enclosing any proof you have that the item is incorrect or inaccurate.
The credit bureau is then required to verify each disputed item within 30 days by contacting the credit company in question. The credit company is tasked with verifying the information. If they fail to respond (something that happens with regularity) or are unable to prove the listing is correct, the information should be corrected or completely removed from your credit report. Be aware, though, that the credit bureau can add the listing back onto your credit report if the credit company verifies the information even after the thirty days has passed.
In the past a credit score of 620 was considered good and anything above 700 excellent; today's threshold for a good credit score is above 700 and an excellent score is even higher. Keeping up with the increasing standards of lenders leaves many Americans looking for a way to raise their scores.
The first step to clean your credit reports is to order a copy of your credit report from all three major credit bureaus: Trans Union, Equifax, and Experian. You are entitled to a free copy of your credit report from each credit reporting agency once a year. Take time to thoroughly look through each report and not rely on your credit report from just one credit bureau, as a mistake or incorrect listings could appear on just one report, and each report does not always report the same data.
After examining each report and noting the damaging items you feel are incorrect or inaccurate, you can write a credit dispute letter to each credit bureau disputing
The credit bureau is then required to verify each disputed item within 30 days by contacting the credit company in question. The credit company is tasked with verifying the information. If they fail to respond (something that happens with regularity) or are unable to prove the listing is correct, the information should be corrected or completely removed from your credit report. Be aware, though, that the credit bureau can add the listing back onto your credit report if the credit company verifies the information even after the thirty days has passed.