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Your
credit rating, like a report card of your credit history, is
important when determining your economic status. When your credit
rating is good, can easily obtain a loan, a mortgage, or credit
cards, among other things. But if you have a spotty payment
history with a creditor, or even went into default with one
or more loans, this negative action is reported to a credit
reporting agency, which keeps track of your credit report. With
a bad credit rating, you will be unable to get a loan or a credit
card (or at least one with a reasonable interest rate). Without
a credit card, you can’t rent a car, or even shop online.
Having a good credit history is crucial to most financial opportunities,
and it is important to begin repairing your credit as quickly
as possible if you find yourself classified as “poor.”
Most people hesitate to attempt
to fix their own credit, because they are unsure where to begin.
The first step to credit repair would be to order a current
copy of your credit report from the credit reporting agency.
To find out which of credit reporting agency tracks your credit,
take a look at a declined credit application. This letter will
indicate the credit reporting agency that provides your credit
rating.
If you’re concerned about
the cost of the report, don’t be. Most people don’t
know that you are entitled to a free credit report. To get one,
just contact the credit reporting agency either by mail or through
their website, and request an application. Once you receive
it, fill it out and mail it with a copy of your identification,
to the credit reporting agency. If you’d rather not wait
for the mailed credit report, most credit reporting agencies
will also provide your credit history on the internet. Unlike
the mail method, however, viewing your report online will cost
a fee.
No matter how you get it, it
is absolutely necessary to review your credit report. Look for
any possible mistakes in your report. If there are any, you
should request, in writing, that the credit reporting agency
investigate the item. After you have done this, the credit reporting
agency legally has 30 days to provide you with documentation
regarding the entry. If they fail to do so, the entry must be
removed from your credit report.
When you request that an item listed on your
credit report be investigated, be sure to send any supporting
documents you might have along with the request. It is uncommon,
but agencies can sometimes make a mistake, or possibly mix up
your credit information with another customer’s. You may
also request that the agency note any entries being investigated
on your file.
It is absolutely necessary that you review
your credit report before attempting to repair your credit.
Unless you do so, you will have no idea what you are dealing
with except that your credit rating is listed as “poor.”
It is important to find out how poor it actually is, and what
is listed on the report, causing a low score. You could be dealing
with several missed payments, or only one defaulted loan. You
may have just received the black mark on your credit history,
or the negative items could be six and a half years old and
nearly ready to expire. Knowing exactly where you stand with
your credit is crucial to beginning your credit repair process.
This
website contains info on how to get a copy of your credit report.
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