| In a world of shrinking incomes, expanding expenses, | | | | the end of the week, you find that you are spending |
| and a spate of joblessness, your credit rating | | | | way too much on a particular item, you can work to |
| becomes more than just a number: it becomes a | | | | remedy it. |
| veritable measure of your social and financial | | | | Take out all your credit cards and list down the |
| reputation. Imagine the ignominy of being rejected for a | | | | amount owed on each card, and the interest rate on it. |
| small loan, or being declined repeatedly for a mortgage | | | | Throw all but the one with the least interest rate into |
| on your dream house. To save yourself such | | | | the trashcan (or freeze them in a bowl of water). Use |
| embarrassment, it is very important to clean up your | | | | only this credit card to do the bulk of your shopping. Or |
| credit report. | | | | even better, get in the habit of using cash to make all |
| A credit report is a detailed account of your entire | | | | payments; it will be a huge help in cutting down on |
| financial history. Every loan you took out, every utility bill | | | | expenses. |
| you paid, every credit card payment you made - it is all | | | | Last, but not the least, keep regular tabs on your credit |
| tracked in your credit report. It is not very difficult to | | | | report. It is the best way to recognize any incorrect |
| enhance up your credit report, provided you are armed | | | | entries that may creep up in there due to human or |
| with the right knowledge, and have a strong | | | | machine errors, and to catch any identity theft-related |
| determination to make your financial future secure. | | | | actions (a very serious problem plaguing America) |
| It goes without saying that the first thing you must do | | | | early. Errors (along with identity theft) are one of the |
| to clean up your credit report is to stop making | | | | biggest causes for low, or incorrectly reported credit |
| frivolous expenses. There is a huge difference | | | | scores. You can easily order your credit file on the |
| between things you need, and the things you want. | | | | internet from any of the dozen or so reputable firms, |
| Learning to differentiate between the two will go a | | | | after you have gotten your annual free one, of course. |
| long way towards a cleaner credit report. | | | | Assuming your score is not perfect, it is very easy to |
| Take stock of all your expenses. Make a weekly | | | | clean up a credit report if you know what you are |
| budget, and track where the money goes. Note down | | | | doing, and have the right tools and discipline to do it. |
| every purchase you make, no matter how small. If, at | | | | |