| 5 steps for improving your credit rating |
| By Dani
M. Arthur • Bankrate.com |
|
Blotches on your credit report cost you.
Don't despair. It's never too late to become
credit worthy -- just get started, and remember that it won't happen
overnight.
Here are 5 steps for improving your
credit rating:
1. Order your credit reports
Find out what the top three credit bureaus -- Equifax, Trans Union
and Experian -- are saying about you. It's likely that they're all
slightly different.
Yes, different! Creditors don't have to report to
all three credit bureaus, so they typically report to the credit
bureau to which they also subscribe.
Useful phone numbers
and addresses |
 | |
(formerly TRW)
P.O. Box 2104
Allen, TX 75013-0949
(888) 397-3742 |
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| | |
Time
and money is wasted, says Steve Rhode, president and co-founder of Myvesta.org,
if you only order a report from one credit bureau. Thanks
to a new
federal law you'll now be entitled to one free credit report from each of
these credit reporting agencies per year. The program rolled out across the nation
one geographical region at a time with all consumers eligible on Sept. 1, 2005.
The reports will not automatically be sent out. Each
consumer must request their reports one of these three ways. Go
to www.annualcreditreport.com,
which is the only authorized source for consumers to access their
annual credit report online for free. Or, call 877-322-8228. Lastly,
you may complete the form on the back of the Annual
Credit Report Request brochure, and mail it to: Annual Credit
Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.
One more caveat: you'll be able to order all
three credit reports at one time, or at different times throughout
the year. It's your choice. But be sure to order from the
centralized agency. If you go directly to the credit reporting agencies,
you will be charged unless you fit another criteria for a free report.
The
new ruling doesn't replace the other ways to receive a free credit report. You're
still entitled to a free credit report if: you've been denied credit, insurance
or employment based on your credit report; you're applying for unemployment or
receive public assistance; and you currently reside in a state that already offers
an annual free credit report from each credit reporting agency (Colorado, Maine,
Massachusetts, Maryland, New Jersey and Vermont. Georgia residents are entitled
to two free annual credit reports from each credit reporting agency.) You
can also order a credit report from each bureau for around $9. 2.
Examine your reports carefully
Nearly every consumer has an error on
at least one credit report from one of the major credit bureaus, says Rhode. Credit
bureaus generate your report on information they receive from your creditors;
they don't verify. Keeping your credit report a true reflection
of you is -- like it or not -- your job. Get ready to clean and polish. Carefully
look for everything from typing errors, outdated and incomplete information to
inaccurate account histories. You'll want to make a thorough list of items you
dispute and why. Be meticulous. | 
