Clark Howard is a name that is heard all across the financial world. If you have watched CNN, you have probably heard his advice on credit and even credit reports. While there is not a Clark Howard credit report available, there are techniques in which he shows every person how to clean up their credit in the easiest way possible.
One of the biggest errors seen on a report is that of human error. When you receive your report, it is essential to comb through the report for any errors. There have been cases where a report held a person back from getting a job or a mortgage for their home. If you think that one of the 3 credit bureaus will help, you are mistaken.
Clark Howard is an advocate of challenging these errors and recommends the following:
- File a complaint immediately. Complaints should be made to the issuer and the credit bureau.
- Always use a manual dispute.
- Complaints and documentation must be sent by certified mail so that you have a record of receipt.
- If there are no corrections made, try to dispute the claim again.
One of the bluntest forms of advice given is that if a creditor fails to remove the error, bring them to court. By bringing the creditor to court, they will likely remove the error and settle the claim without stepping foot in the courtroom.
This is not an easy process and one that will take a lot of effort on part of the person with bad credit. With credit history being vital in landing a job as well as a loan, consumers must fight back and correct these errors quickly.
Increasing Credit Scores
More often than not, consumers have bad credit because they simply have too much debt. When it seems as if debt is insurmountable, there are some sound words that Clark Howard recommends. These are simple rules that everyone should follow.
- Forget about paying off your credit card with the lowest balance. Instead, pay off your card with the highest interest.
- Make two payments per month. What you are attempting to do is pay half in the beginning of the month and half at the middle of the month. By paying debt twice a month, you will end up paying a month’s extra worth of debt a year.
- Those that want to get out of debt should adhere to a plan of 60 months, or 5 years.
One of the best pieces of advice is to not cancel your card once the debt is paid. This will cause your score to drop. Since account opening and closings have a 15 percent bearing on your score, you must remember to leave them open.
A Clark Howard credit report will also be one that is checked and monitored frequently. This can be done using the services offered by respective credit bureaus, or through the use of prominent services, such as CreditKarma. This will allow a person to ensure that there are no black marks on their credit. Identity theft will also be able to be circumvented as a result of continual credit monitoring.