Before you can consider starting your own home based business, you will need to make sure that your credit score is a minimum of 620 in order to qualify for lines of credit. In order to get lower interest rates, you will need a higher score. Scores range from the low 300s to the mid 800s. On average, about 50% of the population have credit scores averaging around 700.
Your credit score is calculated from several different factors used from your credit report. The breakdown of your score is calculated from your payment history, types of credit that you use, amounts that you owe, length of credit history, and new credit accounts. Payment history and amounts owed comprise approximately 65% of the total score. Your credit score considers both positive and negative information that is processed on your credit report.
In order for you to be able to do any kind of self help credit repair to affect your credit score, you will need to know exactly what is on your credit report. There are several ways to find out, You can get both paid and free reports, the paid reports not only give you your credit report but also give you your credit score. To start out, I recommend the free version that you can get from annualcreditreport.com. You can get a free credit report once per year per federal law. When you get your report, you will want to verify all information on the report. You are looking for all accurate and inaccurate information so that you can then make an impact on your score to raise it. To update the information and remove items that should not be on your report, you will need to contact the three major credit reporting agencies Equifax, Transunion, and Experion via certified US Mail. You can get their address on each of their main sites. This is the first step to self help credit repair.
By sending communication certified through the US Postal Service with return receipt requested you are protected by the rights afforded to you by the federal government. When you use the online system of these agencies to dispute claims, you waive these rights for each incident that you are using the online disputing system for.
Each error on your credit report needs to be disputed with each agency. None of the agencies share information and your score with each of them will be different. Look for inquiries that you do not recognize, loans that have been paid off but are still showing as debt, and inconsistencies that you can justify as incorrect. Once you send the letter they are bound by law to contact the company and verify the information. They have 30 days to get this verification. If they do not then the information must be removed per law.