subject: Recovering Your Credit Report [print this page] Your credit report can be a huge headache or it can be the least of your worries. Credit reports are important because we all have to rely on them when seeking loans or other services. When it comes to money all of us can improve our credit scores in at least small ways.
The benefits of improving your credit score are immense. Having a good credit score opens up options and gives you a greater financial freedom.
Your credit score helps your lender, insurance agent, landlord, and others know how we handle our money when paying bills or loans. Credit scores are not taken lightly when a business is agreeing to provide a loan or service.
In order to improve your credit, there are three major things you can do.
First, make a goal and commit to trying to repair your credit score. Repairing your credit score is not an easy process, so you need dedication and motivation.
We can't just stop buying things, but we can all start to budget our money better. This will help ensure that when it is time to pay bills we will be able to pay them off on time and in full.
Second, understand the fair credit reporting act. The fair credit reporting act lists rules about obtaining and using credit reports.
The fair reporting act also helps ensure that if there is anything in your credit report that is false, legally you are allowed to dispute it.
In order to dispute something on your credit report you send the dispute to the credit bureau. When the credit bureau receives your dispute they have 30 days to verify it with your creditor.
If they cannot or do not verify the information provided by the creditor the complaint will be cleared from your file. With this knowledge you should be aware of your credit score and be conscious of what is on your credit report. If anything seems off, make sure to dispute or at least inquire about it.
By understanding the acts and laws put in place to protect you and your credit report you will help ensure that your credit report is in better standing than it was previously.
Third, you should get a free credit report every year. This is one of the best ways to know your credit report's standing, understand what you need to do to improve it, and find any mistakes.
Getting a credit report is simple. The three bureaus have created a website, called AnnualReport, where you can receive your credit report on the website or you have the option to have it mailed to you.
Be aware that they will only give you the credit report, not the credit score. Then, you will need to go through it to determine the score or pay to have your credit score determined for you.
When you take the time to gain more understanding of credit reports you have the knowledge and gain the power to raise your score.
