Credit Report

How to hurt your credit score

Gone are the days when lenders gave to credit to anyone who asked. Today, the rules are tightening up and the lenders are closely looking at your credit report before deciding on giving you that loan. In these economic times, one should have the best possible credit report and score. Believe it or not, many people do things to their credit report that simply hurt their score and lower their chances of obtaining loans or credit cards.

If you’re thinking about borrowing in anytime soon, make sure that you do not do any of these mistakes that will hurt your credit score:

Closing accounts
If you want your credit score to plummet faster than a c list celebrity’s status, simply close some of your accounts! By closing your account, you’re cutting away at your available credit and also increasing your debt to credit ratio.

The credit scoring system isn’t built around common sense as you assumed. A lot of people think that closing an account that is paid off or barely used is a good thing, but they’re wrong! When an account it closed, the available credit on that closed account no longer adds to your total available credit.

A good chunk of your credit score is determined by the ratio of debt to credit. The lower your debt to credit ratio, the higher your score. As a rule of thumb, don’t close accounts, especially if they have a high available balance. Simply pay off the balance and leave the account open. If possible, keep the account active by making small purchases every now and then simply to report history.

It is a good idea to close accounts only when their available credit is low and if they’re new accounts. It is especially good to close accounts if the above criteria match and the cards have a high interest rate or charge annual fees.

Not using credit cards
A lot of the credit card companies are closing accounts that aren’t being used. That’s right; they’re taking on a use- it or lose-it mentality. In these economic times, credit card companies are afraid of just letting anybody sit on a pile of credit.

If you have an account that has a lot of history, it is a good idea to keep that account active by using it every so often. If your account gets closed, it lowers your total available credit and could cost your some points on your credit score.

Credit Report

3 Easy ways to get your credit report

It is important to get a copy of your credit report for many reasons. Knowing your credit, and effectively managing it, is vital if you wish to maintain a good credit score. There are many ways to get a copy of your credit report, some more direct than others.

The first method you can use to get a credit report is to contact a credit reporting agency directly. The three primary agencies are TransUnion, Experian and Equifax. You simply have to go to their website and order a copy of your credit report. You can expect to pay anywhere from $15 to $20 for each copy of your credit report and score. Each agency also have a bunch of other credit reporting services that they offer at higher rates. You do not need to get any of those if you’re simply looking to get a copy of your credit report and score.

The second way of obtaining your credit report is by visiting AnnualCreditReport.com. You are legally allowed to get a copy of your credit report from each of the credit agencies once a year. When you go to AnnualCreditReport.com, you simply have to choose which agency you’re going to obtain your report from and follow the instruction. The entire process is free and you do not need to provide a credit card to complete the request unless you would like to purchase your credit score along with the report.

Since you’re allowed one free report each year from each agency, you can constantly check your credit report every 4 months to make sure that everything is normal.

The third way of obtaining a copy of your credit report is by requesting it from one of the credit agencies when you’ve been denied credit. If you apply for a credit card or a loan and are denied credit, the creditor must explain the reason why they denied you the credit, the credit agency that was used to obtain your report, and a chance to obtain a copy of the report.

Within the denial letter, there should be instructions on how you can obtain a copy of your report. Many times you will have to make a written request, but it is also possible to obtain the report online.

There are many ways you can obtain a copy of your credit report. Go visit one of the sites and obtain a copy of your credit report now.

Credit Report

Know what’s on your credit report

Got bad credit and want to improve your credit rating? Don’t worry it is possible. You can either do it step by step and improve it within a matter of years or do nothing and wait for it to get off your credit in seven years. The choice is yours.

Check out your Credit
First, look at your credit report either by mail or online. There are three different main credit report companies, Equifax, Experian and Transunion. You can even subscribe to watch it every month for a low monthly fee or get it every couple of months. Getting your credit report by mail will cost you a small fee but you can request one for free if you have been denied credit.

Equifax
P.O. Box 740241
Atlanta, Georgia 30374
(800) 685-1111
For fraud alerts: (888) 766-0008

Experian
P.O. Box 2104
Allen, Texas 75013
(888) 397-3742
TransUnion
P.O. Box 1000
Chester, Pennsylvania 19022
(800) 916-8800
For fraud alerts: (800) 680-7289
P.O. Box 6790
Fullerton, CA 92834

If you don’t think you’ll check every month then get the latter of the two. Once you see all the things that are on your credit report start paying them off. The bigger the better, yes you can start small but it’ll only improve your credit in small percentages. The longer an account is open and not paid will only increase in late fees.

The following can be found in your credit report:

Personal Profile which includes your name, Alias, Employer. Your name will be your given name and your alias will be the one that everyone knows you by. Not only will the report show your current employer it will also have your previous employers as well as previous addresses.

Creditor Summary will have a brief listing of all current and past accounts, whether they are opened or closed. You may have revolving accounts, real estate accounts, installment accounts, collection accounts and the total of all accounts. Tthe bottom of your credit summary should show how many open and closed accounts you have, how many public records are out there and the number of inquiries.

Make sure that all the accounts on your report are yours. Many people find out they have accounts that they’ve never even heard of on their credit report. Call the company and dispute it.

Public Records would list any court judgments you’ve had, late child support, tax liens or even bankruptcy.

Account History shows each account you have in full detail. The name of the account, the account number, type of account, its status, monthly payment plan, terms, balance, limits, past due amount (if any), payment status. Your account history will also include the day that your account was opened. Creditors can also post comments on your account.

Each credit report will have a legend to explain everything. To keep your credit in good standing check it periodically, not just once a year. Knowing what’s on your credit can help you. Many people don’t look and realize later that they’ve become victims of identity theft. Don’t let this happen to you, stay on top of things and be very careful with your social security number and any credit cards you may have. If they get stolen report it immediately. Don’t wait a day or two because you think you’ve misplaced them, it’s easier to get a new card then it is to wipe away a bad credit.

Credit Report

How to improve your credit score

Having a bad credit score can cost you literally thousands of dollars if you try to get a mortgage or car loan. The lower your credit score is, the higher the interest rate you will have to pay, if you can even get a loan in the first place. Thankfully, there are some things you can do to raise your credit score. Your score is made up of your payment history, outstanding debt, length of your credit history, recent inquiries on your credit report and the types of credit in use. The payment history and outstanding debt are the easiest areas for you to address to improve your credit score. Here are 10 things to look at:

Is your credit report accurate? Pull your credit score and have a look. If something is wrong, tell the agency, either by phone, letter, online through their website or by e-mail. They can often fix the problems, but only if they know about it and you follow up with them. The law is on your side - the creditor has 30 days to prove that their claim is accurate. If they can’t or don’t it is removed from your report. If you can prove it isn’t accurate, send the proof by registered mail and it will be removed. Even if you can’t prove it but it might be wrong, go ahead and dispute it. The creditor might not respond and you are further ahead.

Do you have accounts in collections or really past due? If so, you want to get them removed from your report. This will help your score immediately. You might even find information on your credit report that you are unaware of. Start by disputing the claims if there is a reasonable chance that your dispute might be successful. If that doesn’t work, contact the creditor or the collection agency directly. They may be open to accepted a lesser amount of money in exchange for getting some money now. Start at 50% of the debt you owe and go from there. Make sure that, as part of any settlement you reach, the creditor will remove the bad credit history from your credit report. If they don’t then you are no further ahead. Get the terms of the agreement in writing so that you have a record of what you have to do and what is promised if you do it. Doing this will definitely increase your score. Even if you have already paid off overdue claims, be sure to contact the creditor and ask them remove the item from the report. You can also dispute the item with the credit agency because the collection agency likely won’t respond since it has already been paid off.

Pay down your debt. If you need to improve your credit quickly and you have some extra money around, pay off some debt. Even if you are saving up for something, you might be better off paying off debt. By paying off debt, you lower your ratio of current debt to available credit limits. The lower this ratio is the better you look to lenders. This means that your credit score will be higher. If you are looking to get a large loan like a mortgage or car loan, paying down your debt to lower your credit score may save you more in the long run than you pay now, because you will get a lower interest rate because of your higher credit score.

Increase your credit limits. This is another quick way to improve your score. Call your credit card companies and ask them to increase your credit limit. Don’t use that extra credit. What it does is lowers your ratio of current debt to available credit, which again raises your credit score.

Cancel some cards. Some people have too many credit cards. If that describes you, cancel some. Ideally, you shouldn’t have more than four. A good ratio of debt to available credit is 40%. Don’t cancel cards if you will rise above this level by doing so. Also, if you cancel cars, cancel the ones you got most recently, so you maintain your history with the others.

Spread your debt among your cards. You are better off having some debt on many cards than a lot of debt on one card. Even if you will end up paying more interest, you will improve your score and get a benefit from moving your balances around so that all your cards are under their limits by about the same amount.

Have no debt or credit history? Get some. If you haven’t been using your credit you have been hurting your score. Go out and use your credit card for purchases and then pay it back right away. Take the low interest loan that your credit card company is always offering. Save the money and then pay it back before the interest rate increases. Once you show that you are responsibly using credit, your scores will go up dramatically quickly. You can start building your credit history at any time. It is never too late.

If you have bad credit, but a relative or spouse has good credit, get yourself added to their credit card. That doesn’t mean that you will use their card. What is does mean is that you will get credit on your credit report when they pay their bill. This is an easy way to create a positive credit history for yourself.

Pay your bills on time. This is such a simple concept, but people so often don’t do it. It is easy to forget to pay a bill until it is past due. Even if you miss the due date by a day or two it is a problem. Set your bills up to be paid by automatic withdrawal from your bank account or pay them online as soon as you get them. Paying your bills on time, or even better paying them early, will help your credit score. Even if you are only paying the minimum payments, paying early is a good thing. Since you can easily pay your bills online or at a bank machine, there is no reason why you shouldn’t do this. It will help.

Look at your credit report to find out when your lender reports. Time your payments so that they occur just before they report. That way the report will show that you have less debt than you actually do. This is a great, simple way to use your credit report itself to improve your credit score.

Credit Report

What exactly is a FICO score?

For those of you who do not know, your FICO score is a 3 digit number that determines the amount of interest you will end up paying on your credit cards, auto loans, and mortgages. On top of that, your FICO score can also play an important role in determining whether you will get that new cell phone contract or whether you will get the apartment you always wanted.

Just about every financial decision you make will revolve around your FICO score. If you do everything you can to protect your score, you will be rewarded with low interest rates. If don’t take care of it, expect it to lash back at you by making sure you get the highest rates and frequent credit rejections.

FICO stands for Fair Isaac Corporation. The Fair Isaac Corporation is the company that created the FICO formula.

To the business world, your FICO score is an indication of how well you will do at handling your loans and credit cards, or whether you are a solid candidate for the job or apartment you are requesting.

With a high FICO score, you can expect a great reputation with the business world; you will get the best of the best deals. A low FICO score translates into paying more interest rates on credit cards and loans.

Your FICO score is based on the way you spend, your bill-paying habits and your overall debt load. The people you do business with, from lenders to credit card and phone companies constantly report on your financial activity to one of the three major credit bureaus.

The formula for your FICO score is determined by the following 5 categories:

Record of paying bills on time	35%
Total balance on your credit cards and loans compared to your total limit	30%
The length of your credit history	15%
New accounts and recent credit applications	10%
Mix of credit cards and loans	10%

Your FICO score can range from 300-850. If you your score is between 300-500, you have bad credit. Obtaining credit is going to be very hard for you. If you do obtain credit, the interest rates are going to be very high.

The range of your credit score will ultimately decide what type of rate you get. On a 30 year fixed-rate mortgage, that can mean a 3.5 point difference on your interest rate. On a four-year car loan it can mean a 10 point difference on your interest rate.
On a 30-year fixed-rate mortgage, a FICO score of 720-850 will typically get you a 6% interest rate while a score of 500-559 will typically get you a 5.9% rate.

On a four-year auto loan, a FICO score of 720-850 will typically get you a 5.1% interest rate while a score of 500-589 gets you a 15.8% interest rate. That difference equals an extra $4,944 for that four year loan.

You see the importance of your FICO score. Treat your credit with respect. A good score will get you great rates. A bad score will haunt you for a long time. Take care of yourself and your credit.

Credit Report

5 Steps to improve your credit score

It’s about that time. You have finally taken a look at your credit report and you cannot believe how low your credit score ranks.

Maybe it is because you missed a few payments last month. Maybe it is because when you were in college, you didn’t take proper responsibilities when it came to your personal finance. What ever the reason may be, it is not over. There are still a few steps that you can take in order increase your credit score.

For those of you who have yet to be initiated, your credit score is a 3 digit number that creditors use to determine your creditworthiness. Employers, insurers and landlords sometime use this number to evaluate applicants. This number ranges from 300 to 850. A small percentage of the population, 11% to be exact, have a credit score above 800. 29% of the population have a score between 750-799.

With a score over 700, you can generally see the difference in interest rates when applying for credit. A whopping 30 million Americans have a credit score of 620 or lower. A score that low will get you higher interest rates and the term “bad credit”.

Before you apply the 5 easy steps to improving your credit score, you must first get a copy of your credit report. You can obtain a copy of your credit report by visiting the Credit Report section of this site. Once you have obtained a copy, peruse it for incorrect information. If you find incorrect information, make sure you contact the credit bureaus to correct the discrepancies.

1. Pay your bills on time

I cannot stress the importance of this rule. Payment history is the largest contributor to your credit score. 35 % of your credit score is determined by your payment history.

If you are going to be late for a payment, do not let it go late for more than 1 payment period. Most creditors will charge you a late fee if one payment is missed, and not report the late payment to the credit reporting agencies. If 2 payments are missed in a row, expect it to show on your credit report.

Tip: A good way to not forget about paying your bills on time is to set up some type of automatic bill payment. A lot creditors offer this option. If it isn’t an option, many banks have the option for recurring online bill payments.

2. Reduce your debt and spend less

Reducing the amount of money you owe means that you are able to pay your bills and that you are financially responsible. When creditors see low balances on your credit cards, they know that you are trustworthy and they know that they can expect a payment from you when it’s due. By spending less, you will be able to maintain a low balance on your credit cards.

Tip: If you plan to apply for a car loan, mortgage, or major credit account in the coming year, start paying down your balances now. If you are one of those people who charge in order to gain rewards, put that habit away for a while. The low interest rate you will receive from your higher credit score will be a boon compared to any reward.

3. Do not close old, paid-off accounts

Closing your old accounts is not going to help you one bit. In fact, it might even lower your score because it makes your balances appear larger when your credit score is calculated. Closing your oldest accounts can shorten your credit report and make you appear less credit-worthy.

Tip: Since opening to many credit accounts and closing your old accounts can be detrimental to your credit, apply for credit when it is absolutely necessary. Think hard the next time that store clerk offers you a 10% discount if you get a store card.

4. Credit counseling is good

Do not be afraid to set up a debt repayment plan with credit counseling agencies. Contrary to what has been said in the past, signing up for debt repayment through a credit counseling agency will not decrease your credit score. In the past it used to, but today, people who sign up for these plans are no more likely to default or go bankrupt.

Tip: Don’t confuse credit counseling agencies with debt settlement firms. Debt settlement firms will actually lower your since you are paying less than what you owe. Be very careful.

5. Do not file for bankruptcy

Stay away from a bankruptcy. This is the absolute worse thing that you can do to your credit. It is worse and paying late and collections. Bankruptcy can knock 200 or more points from your credit score if you had good credit. If your credit was filled with delinquencies and other negatives factors, your score will drop, but not by so many points because you were already low. Bankruptcy pushes your score below 620. Once your score is below 620, credit becomes harder to obtain and interest rates sky rocket.

High interest lenders love bankruptcies because they know that once you have filled, you cannot file again for six years. The main stream lenders will generally reject applicants with a bankruptcy on their records, which on average lasts 10 years.

Credit Report

Free credit reports. Are they really free?

Is It Absolutely Free and Secure to Apply Online for a Free Credit Report?

As soon as you type Free Credit Report in the search bar of your search engine and press enter, you will get hundreds of thousands of links offering you a free credit report. But before you select an online website and fill up there application form for free credit report you should check for certain things. One should check the credentials of the company before applying for a free credit report. Always ask the following things before applying for a free credit report:

Will They Provide You a Credit Report Absolutely Free?

Most of the online companies do offer a free credit report to there customers but they won’t tell them that there membership is not absolutely free and that they will charge you for it after certain period of time. Some companies offer free services for only 30 days and if you don’t cancel your subscription with in 30 days they will bill you for a year. Therefore some of them may ask for your credit card information.

So there is nothing like absolutely free credit report, you will have to get enrolled with one or another company providing credit monitoring service. You should always ask them in advance if there service is absolutely free or there are any fees associated with it.

Is It Secure for You to Order a Free Credit Report from Them?

Check the company’s reputation and market standing before ordering your free credit report. Inquire them about how secure it is fill the application form for a free credit report online and also if they are using the latest technology for encrypting the data you entered. If they require you to enter your credit card details then it is very important for you know if there website is secure and safe. You should ask them if they are going to exchange your personal information with others.

It is very important for you to establish the credentials of the company offering free credit report before ordering for it as the information you share with them can be used against you and can really damage your financial status.

Where They Will Get Your Free Credit Report From?

It is important for you to know from which bureau they are going to get your free credit report as all the three major credit bureaus maintain separate credit files for each individual and if your creditor uses the credit report of a particular bureau then you will also want to have the copy of your free credit report from the same bureau. Some companies offer free credit reports from all the three major bureaus namely TransUnion, TrueCredit and Experian.

Do They Offer Credit Report Monitoring Services?

You may want to hire some company to monitor your credit report through out the year. So it will be good if you inquire about there monitoring services in advance.

Nothing is absolutely free. You should check the terms and conditions of the credit report monitoring service before applying for your free credit report.

Credit Report

Good credit reports are like free cash!

A credit report quite simply is a 7 to 10 year detailed report of your past credit history. It gives information such as; your name, addresses, Social Security Number, current and past employers and your current and past credit accounts and/or loans. This would include banks, retailers, credit card issuers, etc. It will also include public record information like bankruptcies, tax liens, etc. Basically it tells a possible lender; “Can I trust this person to pay me back based on their history or credit report? ”

Why is a Good Credit Report Important?

Sure, you can listen to those TV ads at midnight that promise quick easy financing even if you filed for bankruptcy. Or how about the daily e-mails you receive claiming that you are “pre-approved” and you too can get “easy credit”. You can get these loans or credit cards, but you will also pay double, triple, maybe even quadruple of what a person with a good credit report pays.

An example is that a person with good credit may get a $17,000 five year loan at 8%, which would end up costing them $22,000 ($5,000 interest)for the total price of the loan. That same person with a bad credit report will pay a higher interest rate because of the higher risk to the lender. Their $17,000 five year loan may be at 24%, which would end up costing them $34,000 ($17,000 interest) for the total price of the loan. This is a $12,000 difference over 5 years!

That’s a pretty good family vacation. Magnify that over a $300,000 mortgage loan and you can really feel the impact of having a good credit report.
A Good Credit Report Isn’t Just a Monetary Factor

Having a good credit report can impact more than your wallet. It is much easier to obtain more credit with a good credit report. If your car breaks down or you need a major house repair, it is nice to know you don’t have to worry about how you will cover the cost. Also, insurance companies and employers are checking credit reports more than ever. Get that edge on your competition for that job opening, and lower your insurance rates with that good credit report.
Bad Credit Report? It Can Be Fixed!

Just because you have bad credit it doesn’t mean all is lost. Here are a few things you can do to repair bad credit.

- Go through your credit report with a fine tooth comb. Question any discrepancies on your report.

- Be cautious of companies that say they can repair your credit instantly. You can probably do it yourself at little or no cost.

- Call a nonprofit credit counseling service to help restore order (maybe a consolidation plan) and help create a repayment plan at a lower interest rate.
Access to a Credit Report

Obtaining your credit report is very simple. There are 3 major credit reporting agencies. Just go online or look in the phone book. Most reports cost under $10 or you may qualify for a free report if you have been denied credit in the last 60 days. Bottom line: Don’t be scared to find out where you stand! A good credit report will save you a ton of money interest, not to mention the peace of mind.

Credit Report

3 Reasons why it’s important to read your credit report

The only way you will know what is on your credit report is to read it! If you do not take a look at it from time to time, you will never know whether or not the information it contains is accurate.

This can be a big problem if you are attempting to purchase a house. What if a credit card company has mistakenly reported the wrong information on your credit report? This can cause your credit score to drop, which will make it harder for you to apply for and get accepted for a loan.

By consistently reading your credit report you will be able to notice these mistakes as soon as they happen, and correct them before they begin to adversely affect your credit score. If you fail to notice these mistakes, you will wish you had taken the time to read your credit report earlier!

Reading your credit report will help you repair your credit. What better way is there to discover what is working, and what is not working, as far as credit repair goes, than to read your report?

Whenever you pay your credit card on time, you can look at your credit report to find out how much it has improved your score. If you apply for and get denied for a new credit card, you can see how much that hurts your credit score.

By doing this you can maximize your improvements, and minimize the events that cause your credit score to decrease. This is especially important if you are currently conducting a credit report program. If you had a low credit score, you need to make sure there are no errors on your credit report, and you need to make sure you do as many things possible to improve your score. By reading your report, you will know exactly what these things are, so you can keep doing them.
Why is It Important to Read My Credit Report? Reason Number Three:

Your credit report is personal and important information, all about you! Why would you NOT want to know what your credit report says?

Credit affects all aspects of your life. You can’t get a credit card, a car, a house, and sometimes even an apartment with a poor credit score. By reading your credit report you will know exactly where you stand, so you can gauge whether or not you will be able to do any of the above things.

Carefully watching your credit report will also allow you to decide when it is time to initiate some sort of credit repair program. As was mentioned above, reading your credit report can help you improve your credit, but if you do not look at your credit score, you will not know when to begin an improvement program!

Credit Report

Credit report know-how

Almost every person in their 20’s has heard about a “credit report”. Not quite as intimidating as the college report cards that used to come in the mail, a credit report is a tool used by lenders to track your credit-worthiness. If you have a credit card, auto loan or mortgage payment, you have a credit report and you should know what it says.

Everything You Wanted to Know about a Credit Report (but Were Afraid to Ask)

Starting out with the basic record keeping, a credit report is a tool that tracks your history of loans, be they credit cards or a mortgage. Every time a credit card is opened in your name, or you are listed as a user on another’s account, an entry is made on your credit report. Why is this useful information? This credit report will be a part of your history for as long as you are a consumer. Think of it as a credit “rap sheet”.

All your crimes, or accomplishments, will show up for credit card companies, mortgage brokers, landlords, even employers to look at. A credit report can make or break your future, all based on your past.

What information is on a credit report? As mentioned above, each time you open an account, an entry is made. Each entry will list who the loan is through, what your payment record is, how much money you have available to spend and how much money you still owe. There are several different credit reporting companies and each utilizes a slightly different system.

A common practice is the assignment of a FICO (r) credit score, a number ranging from 300-850, with most people having a score between 600 and 700. This number is constantly fluctuating, depending on how regularly you pay your bills, any loans or lines of credit that have been opened and how much of the line of credit is being used.

Now that you know what a credit report says, how do you see yours? Being the computer savvy generation that we are, online is a great way to start. The Federal Trade Commission (www.ftc.gov) has links to the three major credit reporting companies as well as information about how credit can affect you long term, how to repair a credit score and how to dispute any inaccurate information.
A 10 Year Reunion is a Lot More Frightening Than a Credit Report.

A credit report need not be a scary thing. This isn’t a “Big Brother” approach to tracking your spending. This is a way for lenders to assess risk in loaning you money or offering you a mortgage or rental contract. It is in your best interest, as a smart, hip 20-something to know what your record is. If there were a tool out there that tracked your dating history, and your future partners could check it out, you would want to know what it had to say, wouldn’t you?

Credit Report

A few good reasons to view your Experian credit report

An Experian credit report is a file that contains all aspects of information relating to your credit. If you have bad credit, it is important to view your credit report for several reasons.

The first reason you should view your Experian credit report is to ascertain if you do indeed have bad credit! You may think you have bad credit, but you will not know for sure until you see a copy of your credit report. There are three major credit report agencies. Experian, TransUnion, and Equifax are all credit agencies. You can obtain a copy of your credit report from any of these.

The easiest way to request a copy of your credit report from Experian is by visiting their website and buying a copy of your credit report and score. This typically cost around $15. If you’re not ready to put $15 down, you can get a free copy of your credit report from Experian by visiting annualcreditreport.com. Another way that you can get a free credit report from Experian is if you’ve recently been denied credit. If you recently applied for a credit card and got denied, you might be able to get a free copy of your credit report if the company that denied you the credit used Experian to obtain your credit report.

Once you know if you have bad credit or not, you can begin repairing it. This is another reason you should be interested in seeing your credit report. By constantly monitoring your credit report you will be able to tell if what you are doing is helping or hurting your credit.

Obtaining your Experian credit report also allows you to see exactly how much what you are doing is hurting or helping. The goal of repairing your credit is to improve your score by as much as possible for everything you attempt to do. Viewing your credit report allows you to do this.

If you do not decide to monitor your credit report, you will not be able to tell what effects your efforts are having.

If you are intending to apply for a loan, or any type of credit, it is important that you see a copy of your credit report. This will allow you to determine how much credit you are eligible for, and it will also give you a rough idea of whether or not your bad credit is still good enough to get a credit card or loan.

If your credit is very bad, seeing your credit report will allow you to determine if you are eligible for “bad credit loans”. Overall, there is really not reason NOT to view your credit report, as it can only help you. If you can afford a small fee, you should attempt to obtain a copy of your credit report as soon as possible.

Credit Report

Three basic steps to building a good credit history

A credit report, also known as a credit history or credit file, is not one of life’s options. Credit reporting agencies are private businesses that supply your credit report to lending institutions and others with a need to know.

Like it or not, the information in that report will determine the types of mortgages, auto loans and credit cards you get, and even where you can live. It can even be the deciding factor in whether you’ll land the job of your dreams or be passed over for someone with a better credit history.

There’s a lot you need to know about credit reports and how they impact your life. Ignorance is NOT an option; you never know when the information will have a MAJOR impact on your life. Be pro active: learn everything you can about your report and how you can make it the best it can be.

I can’t possibly cover everything you need to know here, but here are 3 basic starting points. Then, it’s up to you to educate yourself further. The Internet contains an avalanche of information and your local library or bookstore can provide you with some good books. Take advantage of it.

Credit Report Basic Step #1: Check It!

Credit reports can be intimidating. You get the impression that they’re mysterious and hard to read. Well, they’re not and…they’re not. Though each have their own format, the credit reporting agencies do their best to make the reports user-friendly.

There are three major agencies: Experian, Equifax and Transunion.

The point here is to take charge of your life. Check that credit report!

Credit Report Basic Step #2: Dispute It!

Go over each report carefully. Don’t assume they’ll contain the same information. They may not. One report might have inaccurate information while another might have incomplete information.

The Fair Credit Reporting Act, passed in 1971 (and amended in 1996) allows you access to your credit report and the right to dispute inaccurate, incomplete, obsolete or non-verifiable information. So dispute it! (And while you’re at it, update your address, phone number and employment information.) It can only help you.

You should receive a dispute form and instructions on how to file a dispute with your reports. If you have any questions or didn’t receive the information, simply call the agency or log onto their Web site. Most agencies allow you to file a dispute online, saving you a lot of time and hassle.

Credit Report Basic Step #3: Pay It!

Once you’ve removed inaccurate and incomplete information, your next step to polishing up your credit report is to start paying your bills on time (if you’re not already). That includes not just loans, but utilities and telephone bills. Late payments on any of these can wind up on your credit report and cause a lot of damage.

If you have a history of late payments, don’t despair. More weight is given your most recent payment history. As you begin to pay your bills on time, older late payments will drop off and your credit standing will improve — substantially.

Taking steps to educate yourself and polish up that report will provide benefits for a long time to come. It’s never too late to begin.