Transunion, one of the three main credit bureaus, sell their credit reports to lenders who are seeking to do business with you. If your credit report with Transunion shows that you are bad at paying back lenders late, lenders who request your credit report will be cautious of whether or not they are going to lend money to you. They fear you will never pay them back their money so they will increase your interest rates, giving you a higher punishment for not making your payments on time.
If your Transunion credit report is looking bad, there are a couple of ways to improve your Transunion rating. One important way is to analyze your credit report and have any old negatives deleted or corrected on the statement. The alternative way is to begin rebuilding a payment history with a creditor on a credit card account or something with revolving credit.
It’s important for you to really closely peruse your credit report for anything that needs to be deleted. According to the Fair Credit Reporting Act, “expired” accounts can be deleted from your report. It is your right to have these expired accounts deleted from your free annual credit report. Transunion will not delete these accounts from your report unless you write to them about it. Make it your responsibility to take care of any discrepancies on your free credit report.
To begin rebuilding a credit history can be a tough task. The biggest hurdle is being able to qualify for a new credit card or loan in the first place. In order to pass this hurdle, you need to get a hold of a secure credit card which does not go by your current bad credit rating. Once the lenders see your poor credit rating, they will deny you a chance to redeem yourself.
Instead of asking for your credit score, the lender will ask for a deposit and will only lend you the amount you have already deposited. It is only then will the lender approve for your new fresh credit card account.
Another loophole you can take into consideration is to ask a relative to allow you to be added to their revolving credit card accounts. This relative must have the same last name as you when you are added. Obviously you would want to attach your name to a relative’s credit card that has a good payment history to begin with.
Try to request creditors to report positive account information, as well as monthly payment history to Transunion, so that it can demonstrate stability in your credit file. Taking out secured credit cards will also help you build a solid credit history. Be careful though, having too many inquiries to your credit report may lower your score.
Depending on your current credit rating, it could take anywhere from three weeks to three months for you to even see a lift in your Transunion credit report. Be sure to take advantage of the free credit report offered to you by Transunion every year so you can stay on top of how your credit score is doing.