2. Track your
history of payments.
A history of timely
payments is what impresses lenders. This is the item they check before they'll consider offering you a loan or credit.
Check your report to see that your payments are being reported
accurately to the credit reporting agency (CRA). History of late
payments will result in you being charged higher interest rates or
having your credit application or a loan denied. Late payments lower your FICO score.
The better the FICO score the easier it is to obtain credit faster,
cheaper and easier.
3 Checking regularly protects against potential identity theft.
Identity theft has become the fastest growing crime
in our nation. Identity theft complaints jumped 75% from last year
according to a recent Federal Trade Commission report. The monetary
loss from identity theft crimes skyrocketed to a combined $53
billion in 2002! Accounts that appear on your credit report that
weren't opened by you could be a sign of identity theft. Report any
such occurrences to all three major credit bureaus immediately and
have them place a fraud alert on your account.
4 Keep inquiries to a minimum.
Make
sure all of the listed inquiries were ones you asked to be done. If there are
unauthorized inquiries, write to the credit bureau and to the
company that made the inquiry informing them that you did not
authorize the inquiry and to remove it from your credit file.
Lenders can regard too many inquiries within a short
period of time (30-60 days) as a negative and can result in the
refusal to extend further credit. Watch those credit card free
offers and pre-approved cards. Many times they inquire about your
credit before sending you their offer. To many can cost you instead
of help. 5 Check
your credit without hurting your credit score.
A
credit score, also called a FICO score, is a numerical grade given
to each consumer . Your FICO score is an analysis of your credit
risk based on your history. Credit scores range from 300 to
900, and those with scores in the range of 640 to 700 are considered
excellent credit risks. Those with FICO scores below 500 are
considered the highest risk and
therefore most lenders won't even consider them. Consumers with
higher credit scores receive the best rates and terms on credit and
loans.
You can raise your credit score as much as 240 points by just taking
the proper action
The three bureaus can be reached at:
Equifax 800-997-2493 www.equifax.com
TransUnion 800-888-4213 www.transunion.com
Experian 888-397-3742 www.experian.com
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