In 2005, the FACT ACT went into effect. This ACT gave you the right to obtain a credit report a year from each of the three major credit bureaus, Equifax, Trans-Union, and Experian. These agencies have set up a central location for you to do this: AnnualCreditReport.com Once you have obtained your reports, you can verify the information. Since a credit report is a listing of how much credit you have available, how much you actually owe and how you paid the obligations you incurred in the past, it is used by potential lenders to evaluate your standing. You need to review this report carefully. Verify the accuracy of all the information carefully. Are the balances of your accounts correct? Is the list of lenders accurate? Have you closed accounts and is this information reported? Are you aware of all inquiries listed on the report? Is the basic information accurate: name, address, Social Security number? The accuracy of this information is vital to your credit life. If there are listings for credit cards, loans or any other transaction that you are not familiar with, you could be a victim of identity theft. Should you note a serious problem, contact the fraud department and request an alert be placed in your credit report. This will stop all accounts from being opened without the lender contacting you first. Should you find that your credit rating is lower than you expected, you can improve this score. Steps to help you do this: 1. Make a list of lenders and the balances you owe them. 2. Determine how much disposable income you currently have to pay these bills. 3. Make a list of the lenders you would like to eliminate those with small balances. 4. Pay additional amounts to those lenders you have decided to eliminate first. 5. After you have eliminated one, work on the next bill. Overtime, you will pay your bills more promptly, owe less money and, although it will take time, you will improve your credit score. Then when you search for credit, you will find lower interest rates and have an easier time obtaining it. |
