How Healthy Is Your Credit

There’s only one manner to discover the “health”
of your credit. You need to analyze your credit
report. Your credit report is your “consumer
identity” that possible lenders will utilize to judge your
credit worthiness.

Use these tips to give your credit profile the
“tune-up” it needs for 2004.

Tip #1- Check for Errors
Your credit report or profile is more than than just a
aggregation of who your creditors are and how much
you owe them or have got paid them.

The first thing you need to make is carefully check that
your credit report is accurate. Nearly 70% of credit
reports incorporate errors.

These mistakes may be as simple as an wrong
center initial or address. Or it could be as serious
as a creditor reporting that you were late with a
payment when in fact you were not late at all.

This mistake might not look like a large deal to you. However,to a hereafter lender like a mortgage company it do a large difference !

Carefully analyze your credit report and if you happen an
mistake contact your creditor and the credit bureaus. Catch
and right these mistakes now before it aches your chances
of securing credit in the future.

Tip #2 - Correcting Errors
The two most common mistakes contained in credit reports
are:

1) wrong account information

2) incorrect recording of late payments.

If you happen an account reported that makes not belong you,
you need to reach the credit grantor or issuer immediately. Remember, finding accounts that you have got not personally opened is a mark of possible identity theft.

Hopefully you’ll discover that this mistake is nil more than an inadvertence and not an identity theft problem. Most often this happens when they report an account belonging to a household member or person with a similar name on your credit report.

If your problem is an mistake in reporting a late payment
you will need cogent evidence to endorse up your lawsuit before this mistake
can be corrected or removed. The most common mistake happens when a payment is reported as “late” when it was actually a current or “on time” payment.

In either case, the problem can and should be corrected. You will need to rectify the mistake in writing. Keep a diary or log of all phone calls and correspondence.

The Carnival Credit Reporting Act (FCRA) necessitates the credit
bureaus and the agency reporting the information to the
credit agency to rectify inaccurate information in your
credit report. Therefore, it is of import that you contact
both the credit agency and the creditor whose information is in dispute.

A sample missive is included here to assist you in correcting
your credit profile. Brand certain that you clearly place the information that you dispute, include transcripts of gross or written documents that support your position. Then petition that the information be corrected or deleted from your file.

Send your missive by certified mail and petition a tax return reception from the recipient. Keep all correspondence that you get off out. Give the agencies involved 30 years to get their investigation. You can name them but be aware that phoning them makes not protect your consumer rights! You must advise them in authorship to protect your rights.

They must advise you of the consequences of their investigation. Although the procedure will take time, it’s of import to make it. This is your credit profile, your “consumer identity” that is at stake. Don’t anticipate an mistake to rectify itself.

At your request, the credit bureaus must direct notices of
rectifications to your credit profile to anyone who have requested your report in the last six months. If you applied for a occupation and were turned down because of inaccurate information in your credit report, you can have got the corrected report mailed to anyone who received a transcript in the past two years.

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Sample Dispute Letter
Date

Your Name
Your Address
Your City, State, Nothing Code

Complaint Department
Name of Credit Reporting Agency
Address
City, State, Nothing Code

Dear Sir or Madam:

I am writing to difference the following information in my file. The points I challenge are also encircled on the attached transcript of the report I received. (Identify item(s) disputed by name of source, such as as as creditors or tax court, and place type of item, such as credit account, judgment, etc.)

This point is (inaccurate or incomplete) because (describe
what is inaccurate or uncomplete and why). I am requesting that the point be deleted (or petition another specific change) to rectify the information.

Enclosed are transcripts of (use this sentence if applicable and depict any enclosed documentation, such as as payment records, tribunal documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the moot item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

Originally Posted at http://www.ftc.gov/

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Tip #3 - Budget Planning
You can also utilize your credit report to assist you be after and
implement a personal budget. Your credit report will demo
you where you are disbursement your hard earned dollars. While the credit card balances may not be completely current, you’ll still see which of your cards have got the highest balance outstanding.

If you have more than than one major credit card you should
compare the annual percentage rate (APR) you are paying
on each account. If you are working on a budget to “pay
down” your credit cards, start by paying down the 1 with the highest APR or interest.

Once that credit account is paid off, move toward paying
off the account with the second highest APR. Using this
method you will be able to concentrate your attempts toward paying down your outstanding credit obligations.

You should also check with your credit card company to see what’s the best annual percentage rate (APR) they can offer you. If you are a good customer, you can often measure up for a lower rate than what you are currently being offered.

Caution: Ask if the new rate you are getting is a “promotional” rate or a “contract” rate. A promotional rate will run out at the end of the promotional term, for illustration 6 months. A contract rate makes not have got an “expiration” arsenic long as you go on to ran into the terms outlined by your creditor for that rate.

Tip #4 - Making a major purchase
If you are considering a major purchase such as as a car or a
home, checking your credit report gives you the opportunity to see what a possible lender sees and usages to judge your credit worthiness.

You desire to do certain that your credit report is accurate
before you apply for that athletics car or new home. Errors
or problems can be corrected before your lender can utilize
those against you and deny your credit request. You’ll also have got a better thought of what type or rate of credit you should anticipate from a possible lender.

Tip #5 - Check your credit report regularly
Check your credit report regularly. Guard your “consumer identity” arsenic you would anything else you treasure. Use your credit wisely, along with these tips, and you will enjoy the benefits that your good credit and your good name rate now - and for old age to come.