| A lot of people have bad credit these days. | | | | reporting agencies, which are Equifax, Experian, and |
| Sometimes it is simply a matter of not taking their | | | | TransUnion. Each of them keeps a credit report on |
| credit privileges seriously. Maybe your credit card | | | | you, and since they do not share data between them, |
| issuer has provided you with the utmost in poor | | | | each very likely has a different view of you from a |
| customer service, so you feel no obligation to pay your | | | | credit perspective. Get your credit reports and go over |
| credit card bill on time, thinking "I'll show them who is | | | | them with a fine tooth comb looking for inaccurate |
| boss". Do not deceive yourself this way, because they | | | | information. The reality is that the majority of consumer |
| will ultimately have the last laugh as they report your | | | | credit reports contain errors, and those errors do not |
| LATE payments to the credit bureaus, and this hurts | | | | get corrected automatically. In fact, they NEVER get |
| you by giving you a lower credit score than you should | | | | corrected unless YOU initiate the action to get it |
| or could have. | | | | corrected. |
| Maybe you had fallen on some hard times several | | | | Another reason for going over your credit reports is to |
| months or several years ago, when you got laid off | | | | look for accounts that do not belong to you. The crime |
| from your job, you were going through a divorce, you | | | | of identity theft is the fastest growing crime of this |
| had some unexpectedly high medical expenses, or a | | | | century, and you could be a victim of identity theft and |
| myriad of other possibilities. Whatever it was, it caused | | | | not even know about it, although this would probably |
| you to get behind in your payments, so you were | | | | be reflected in your credit reports by listing accounts |
| reported to the credit bureaus as having late | | | | that you do not know about. |
| payments, which again lowers your credit score. | | | | To improve your credit score, there are multiple ways |
| The value of having a good credit score these days | | | | to do it. With the credit cards you already have, make |
| cannot be underestimated. When you go to apply for | | | | sure that you make your payments on time. If you mail |
| a new job, chances are high that your credit will be | | | | your payments in, make sure to mail them enough |
| checked, which most employers feel is a good | | | | ahead of time so that the payment will be posted to |
| indication of your character and how seriously you | | | | your account prior to the due date. More than anything |
| take your duties and obligations. A poor credit score is | | | | else, making payments on time, consistently, will be |
| also going to cause you to pay a higher interest rate | | | | your best friend in your goal of raising your credit |
| on your mortgage, your car loan payments, and many | | | | score. |
| other things, which can add up to costing you hundreds | | | | Get a secured credit card. Typically you can be |
| and even thousands of dollars more in interest than | | | | approved for one or more of these, since your credit |
| you would have paid with a good credit score. | | | | limit is exactly the same as the amount of money you |
| So let's assume that those previous problems are | | | | have put on deposit with the card issuer. Use the card |
| behind you, you understand the value of making | | | | sparingly, but always pay it off at the end of the |
| payments on time, and that you now want to rebuild | | | | month. |
| your credit so that your credit score will also be | | | | As your credit starts to improve, you may qualify for |
| increased. Keep in mind that this is a PROCESS and it | | | | an unsecured credit card. Again, use it sparingly and |
| does not happen overnight. In reality, it will take a | | | | pay it off at the end of each month. Always make |
| minimum of several months of consistently good | | | | sure to pay on time. |
| actions on your part, but that is also part of how your | | | | You did not get bad credit overnight, and your credit |
| credit score is derived, by looking at your credit | | | | score will not improve overnight. But with consistent |
| HISTORY and seeing a consistently good record. And | | | | action on your part and making each and every one |
| of course, it takes time to create that history. | | | | of your payments on time, your credit score will |
| Another very important step that many people forget | | | | improve and give you the type of credit score that |
| or do not take time to do is to get a copy of your | | | | you can be proud of. |
| credit report from each of the three major credit | | | | |