Clean Up Your Credit
Based on the trend America is transitioning from a country of who can accumulate the most to the NEW America that better SAVE and BUDGET TO SURVIVE!
Part of the NEW AMERICA - the “SAVE AND BUDGET” error is making certain your finances and credit are in order.
Good Credit Score - A good score determines how much you can save on a home, a car, a credit card or even an insurance policy. A tiny slip-up can come back to haunt you.
A year ago, a score of 720 would have had lenders lining up for your business. Today, a score of 740 or 750 will get you an account but might not qualify you for the lowest interest rates, says Bill Hardekopf, of LowCards.com. (Yahoo-Finance)
Things to do to improve your credit score:
1)
Review your credit report once a year --- ITS FREE! Log on to
http://www.AnnualCredit-Report.com and get a free copy from each of the three credit bureaus: Equifax, Experian and TransUnion. (Note: Copycat sites often require you to purchase other services in order to get a "free" credit report.)
2)
Review the report a fine-tooth comb and identify any account that does not belong to you, addresses that you didn’t reside in, amounts that are inaccurate, paid-in-full accounts that still show a balance, accounts indicating collections or passed due when they weren’t etc. Reference all institutions and account numbers to make sure each account is yours (remember someone’s information with the same/similar name and/or a typo of a social security number can make someone else’s Credit history yours!)
3)
Check Dates on Negetive items *(Yahoo-finance) Gerri Detweiler, credit adviser for Credit.com, says it's also important to check the dates on any negative information that's being reported. Negative items, such as collections accounts, may generally be reported for seven years from when you first fell behind. Two exceptions are bankruptcies, which may be reported for ten years, and tax liens, which may stay on your record indefinitely until you pay them.
4)
File a dispute immediately with each bureau that reports an error. File a dispute not only for accounts that are in error but even for those that are not (especially for merchants that have gone OUT OF BUSINESS). The process should take 30 to 45 days for the bureau to investigate any disputes you submit. Merchants normally have 30 days to respond to your dispute, if they don’t or can’t prove your debt --- it is taken off your credit report automatically. Be persistent until the problems have been resolved.
5)
Minimize the ratio of your outstanding debt to your credit limit (credit-utilization ratio) for each card you hold. (Try to keep your balance below 25% ). If you're near your limits and a long-standing customer with a good history, you could ask your current card issuers to raise your limits. Also focus on paying down your balances so that you're using less of your available credit.
6)
Don't apply for new credit cards you don't need. That 10% discount or $25.00 off your purchase a retailer offers when you sign up for its card isn't worth it. When you apply for new credit, an inquiry is made on your credit report. Each inquiry is a tiny ding to your credit history. Craig Watts, of Fair Isaac, says that your best bet is to take on new credit only when you need it.
7)
Pay your bill in full each month. If you can't, pay at least the minimum, and make your payments on time. Late payments lower your credit score and may automatically trigger a higher rate. And if other lenders see that, they may raise your rate, too. That could result in more late payments in the future-and thus set off a vicious cycle of credit-card debt.
8)
Don’t be late with payments -If your payment date is inconvenient, call your card issuer and request a change in the date. It may take a cycle or two to get results, but lenders are often happy to work with you.
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