STEP 1: Know the score. What's your credit score? A
recent study found that 63% of people don't know what their
credit score is. So if you're not sure, now is the time to
find out. Lenders use your credit score as part of their
evaluation, and credit scores generally range from 300-850.
Anything over 650 is usually considered a "fair" score that
qualifies you for standard rates. The higher your number,
the better shot you have at getting great interest rates.
So if your score is a little low, you'll want to boost that
number. Otherwise, you could pay way more interest on loans
and big purchases than you should.
STEP 2: Make sure your credit report is correct. There are
a bunch of different factors that help determine your
credit score. Things like your payment
history...outstanding debt...length of time you've had
credit...number of inquiries...and the type of credit you
have make up your score. All this information is found in
your credit reports.
If your information isn't correct, your credit score could
be affected. Take a look at your credit report. Go through
each section and make sure everything is 100% correct.
There's a handy checklist you can use that'll show you
exactly what to look for as you go over your credit report.
If you do find wrong information on your credit report,
dispute the items with the credit bureaus to have
inaccuracies on your credit report corrected. And now you
can easily file your dispute online. The credit bureaus
have 30 days to investigate your claim and make any
appropriate corrections.
You'll find the creditor contact information right on your
credit report.
STEP 3: Pay on time, all the time. It's simple: late
payments, collections and bankruptcies have the greatest
negative effect on your credit scores. By being punctual,
you can keep your score up (and your interest rates down).
Some folks struggle with making payments on time. Are you
usually late? The best thing to do is sign up for automatic
payment. Or try banking online with email reminders. You'll
be surprised at how doing something like changing your bill
paying routine can help. And if you do pay on
time—don't change a thing!
Following these 3 steps will get you headed in the right
direction to a better credit score. By taking aim at a
higher credit score, you're taking control of your
finances. So the next time you need a mortgage, a car or
any kind of credit, you'll know your number is going to get
you the interest rate you deserve.
----------------------------------------------------
Since 1999, TransUnion's TrueCredit has helped millions of
consumers successfully manage their credit. Through a suite
of educational materials, free monthly newsletters and
easy-to-use products, http://www.TrueCredit.com empowers
consumers to achieve greater financial well-being.
TrueCredit.com's online products include credit reports,
insurance and credit scores, credit monitoring, debt
management tools and identity theft insurance services.
No comments:
Post a Comment