Credit reports/scores give lenders a fast, objective measurement of your credit risk. Your credit report is a major factor in determining:
- Your eligibility to qualify for loan
- What interest rates you’ll be charged
- Your ability to rent an apartment or house
- Your ability to get a job (certain industries run credit checks during the hiring process)
Since your credit report has such a big impact on your financial situation, it’s important to put yourself in position to have an optimal score. However, unless you have experience with credit reports they can be very confusing and intimidating. It is estimated that over 70% of individuals who request credit reports find some type of error; and 1 out of every 4 credit reports contains an error serious enough to damage the credit rating.
You are entitled to obtain a copy of your credit report every twelve months at no cost. Simply visit www.annualcreditreport.com to get a copy of your credit report. Once you have your creditor report, then you can contact one of our Certified Credit Counselors. We will help you understand your credit report and give you tips on what can be done to improve your credit score. Having an understanding of your credit report can save you hundreds, even thousands of dollars over your lifetime.
Here are some quick general tips on improving your credit score:
- Pay your bills on time
- Pay down your debt
- Don’t close accounts if not necessary
- Don’t apply for credit you don’t need
For more information about your credit report visit www.myfico.com
