Credit Report Review
You can obtain your free credit report from FreeCreditReport.com. A credit report shows your credit history and credit activity, and reflects your financial health to potential lenders. The score on your credit report has a big impact on your life. Access your credit report and then bring it to us to review it with you.
Not only is it important to understand your credit score, but it is also important to understand how to improve your credit score in order to reap the advantages of good credit.
Reviewing your credit report with a trusted financial professional is a great way to pinpoint ways in which you can strengthen your credit health.
Why do I need a high credit score?
A high credit score can mean a lower rate for a bank loan while a low credit score can result in more expensive insurance premiums. Creditors have been using credit scoring systems to determine if people are a good credit risk for some time. Many businesses, not just banks, use a person’s credit score to determine if a product, service, or employment offer should be provided.
The higher your credit score, the less of a risk you are considered to be. So, the higher the score, the better. The scores generally range from 300 to 850. A score of 670 or higher could mean that you are eligible for better loan rates.
How do I obtain my credit report?
You can obtain your credit score from any one of the three national consumer reporting companies. They are allowed to charge a reasonable fee, typically around $8, for the score.
To improve or maintain your score:
- Pay your bills on time.
- Do not max out your credit limits.
- Do not apply for too many new credit accounts in a short period of time.
- Do not have too many credit card accounts.
- Develop a credit history as early as possible to demonstrate a long record of responsibility.
Since your score is comprised of information from your credit report, it is important to ensure that your credit report is accurate.
If you find inaccuracies:
- Dispute the inaccurate information directly with the consumer reporting agency and maybe even with the provider of the information.
- Tell them in writing what you believe is inaccurate.
- Provide as much proof, including copies of documents, as you can to support your position.