| If you haven't reviewed your credit report
lately, it's probably a good idea to do so, especially if
buying a home or securing another type of loan is in your
near future. 
A credit report is a running scorecard of your entire financial
history, both the good and the bad. However, some individuals
may find inaccurate or misinformation on their financial report
card that could wrongfully hinder them from securing loans
and credit. For example, your social security number may be
incorrect and someone else's credit history may be showing
up on your report. Or, if you share the same name as your
father or mother, their financial history may appear on your
report as well.
When reviewing your credit report, at first glance it may
appear to be a jumbled mess. But once you examine it closer,
you'll find that it includes a list of your charge accounts,
the amount owed on each and any late payments that you've
made. Current mortgage, auto and student loans are also noted.
You'll also find a list of any tax liens, mechanics' liens
filed against your home, court judgments and other publicly
held records such as bankruptcies.
To ensure you have a credible financial history, request
a copy of your credit report as well as your spouse's, partner's,
or anyone else who will be applying for a loan or credit with
you. The three top national credit reporting bureaus are
Experian (formerly TRW),
Equifax and
TransUnion.
If you find an error, mail proof of the error in writing
along with a brief explanation to the creditor. Even if you
don't find any discrepancies and you have a relatively good
rating, there are a few easy steps you can take to boost your
credit rating even higher.
Although you may not be using that stack of credit cards
in your wallet, lenders view the combined available credit
as a high-risk loan just waiting to happen. Once you have
balances paid off, close unneeded credit accounts and destroy
the cards immediately. Having fewer open cards with on-time
payments ranks you very high among lenders.
Lenders also like to see a stable job history. Two years
with the same employer is ideal, but they could accept less
if all other components of your history are intact. |
