How To Repair Your Credit Report

Your credit report is an important asset to your financial profile. Find out how you can repair your credit report!

Your credit report is probably more important than you realize. Whether-or-not a mortgage company will lend you the money for a new house, or a bank will lend you the money for a new car, depends on your credit rating. You probably know that. But did you know that if you rent an apartment, your prospective landlord will probably check your credit rating first? A tenant with a good credit record is more desirable than someone who has a history of financial trouble. And did you also know that the rate you are charged for your car insurance reflects your credit rating? Policyholders who have poor credit ratings are placed into a special high risk bracket and they are charged higher rates for their insurance coverage. So, it is very important to maintain a good credit rating, or, start building a good credit rating today.

If you have a good credit rating already, you should check your credit reports at least once a year to make sure there are no discrepancies or mistakes on it. Clerical errors are sometimes common. Sometimes, names are confused, and a negative listing that was supposed to go on John B. Doe's report goes on John D. Doe's report by mistake. Unfortunately, there are also occurrences of identity theft. This is the use of someone else's credit without their permission. Thieves that do this use another mailing address. That is, they send in a change of address to your credit card company. Therefore, you won't know about the illegal use for some time, unless, you check your credit report periodically and make sure that it is accurate.

In order to obtain your credit reports, you will need to contact the three major credit bureaus. They are TRW, Trans Union, and Equifax. You can find their contact information on the Internet. If you have recently been turned down for credit, then you can get a copy of your credit report for free. Otherwise, a fee applies.

If you find any errors on any of your credit reports, then you will need to contact the reporting agency and dispute it. You will need to provide evidence to support your claims. This can include copies of canceled checks, receipts, etc. If you can prove your claim, then your report will be corrected.

If your credit is not good already, then you need to start building it up, or back up, again. There is no legal way to instantly eliminate any negative ratings that may exist on your credit report. Beware of programs that offer this service. The only way to obtain good credit is to get some type of credit and then use it responsibly. Make the monthly payments on time. And, if the credit is in the form of a credit card or account, be careful not to overspend past your limit. After you have made enough payments on time, you will undoubtedly be offered other credit.

One of the options available is to apply for a secured credit card. The lending institution will most likely require that you open a savings account or a certificate of deposit. Your credit card limit will then be the amount that you have secured with them.

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