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There are a few reasons why your credit score may be low. First, you may not have established credit yet. Credit scores are based heavily on your credit history, e.g. loans you have taken, expensive items you have purchased, etc. If you have little or no credit, it will be difficult to have much of a credit score. However, having too much credit can also be bad. If you have high debt balances, have borrowed more than you can afford, or have missed credit payments; chances are your credit score has taken a hit. However, there are a few simple steps you can take to improve your credit.

First, obtain copies of your credit report from all three bureaus. The reason for this is that each of the credit reporting bureaus have unique formulas for calculating credit scores.  Therefore, your score may be higher or lower with one bureau depending on the information reported.

Second, review your credit reports from each bureau carefully. There could be discrepancies in what is reported between the bureaus. If you only obtain the report from one bureau, you may be missing information reported to one bureau and not all of them. If you find any errors or misreported information, dispute it in writing to the credit bureau right away.

Third, develop a plan for disputing errors or misreported information on your credit report.  Do you have impended lawsuits from a creditor? Have you been contacted by creditors about missed payments and owed debts? Are you concerned about wage garnishment or repossession of assets? If you answered “yes” to any of these three questions: stop and contact a Sacramento bankruptcy attorney right away.

An experienced bankruptcy attorney can halt your credit collections, and stop further damage to your credit report while you work out a plan with the court to resolve your debts.