Credit Score Repair Basics
Here are some basic tips and credit score repair tips that will allow you to maintain your credit report and protect your financial future.
Everyone has heard that they should guard their credit report, as it is very important. Many people tend to forget about that warning until they are denied for a loan and then suddenly, their credit report becomes the most important thing in the world to the, Maybe it was not an error on their part but rather that they were a victim of identity theft. To make sure that you are on the right track you will want to review what is typically found on a credit report and understand the precautions that you can take.
The first thing you want to do is to obtain copies of your credit report. One report will not do because each credit report could have different information on you. You must receive a copy from each of the three major credit-reporting agencies. Legally, you are entitled to one free copy of your report from each company, once a year. You should also look into monitoring your Fico score so that you can really gauge things, but you do not have to go that far if you do not want to. However, it is the Fico score and everything reported on you that determine whether lenders will work with you and at what cost if they do.
The reports will have several sections. Know that there will not be personal or private information about your race, net worth, or salary included. There will be the usual identifiers such as name, address, and social security number in the first section. There will be a section related to any trade lines. These lines will include loans, mortgages, credit cards, gas and department store cards. It will give the date each trade line was opened, limits, payment history (including late payments), balances, overdrawn bank accounts, and unpaid child support.
The court system also reports to the credit agencies. Generally, these reportings consist of divorces, judgments, liens, and bankruptcies.
Any time you apply for a loan or charge card there will be an inquiry made to the reporting agencies. Your report will include not only these inquiries but inquiries by you. Inquiries normally remain for 2 years. Be aware of your inquiries as they can be a good early warning sign if someone is attempting to get credit in your name.
It is obviously to your benefit to keep your report clean. Negative information will remain on the report for 7 years if you do nothing about it and a bankruptcy is on your credit report for 10 years.
It is important that we obtain and seriously review our reports to be aware of differences on each one, locate any and all errors. It is up to each individual to monitor his/her own profile, fix errors, and repair, if necessary.