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Find out what credit reporting agencies are saying about you before you apply for that much needed loan or new low-interest credit card.
Credit agencies maintain credit reports that are sold to lenders and other service providers making decisions that could affect your ability to secure a loan, get a job, or buy a home. The files contain detailed personal and financial information that should be reviewed before each major purchase, each important application and at least once each year. Review your credit report looking for "red flags" that may concern lenders including:
. Payments in delinquency.
. A record of late payments.
. A series of credit cards each with high credit limits and only minimum monthly payments.
. Loans in default.
. A scattered employment history. If you move often for employment reasons it may be wise to put a note to this effect in your credit file. People who move frequently lose credit points because they are considered transient and less reliable than others.
Take steps to improve your credit report and FICO score today by applying through our approved site links to the right.
(See below for more information.)
Take steps to improve your credit report and your FICO score, if it is low. Your FICO score is a computer-generated number that suggests how likely you are to pay lenders back, on time and in full. Scores range from 300 to 850, with a score of 700 or greater preferred by lenders.
. Apply for a secured credit card and may payments in full each month.
. Making regular payments on your line of credit on time.
. Correct mistakes such as payments labelled as late.
. Pay all of your bills on time. This is always a good practice but especially critical when you need a loan. That's because a late or missed payment in the last few months is likely to lower your FICO score much more than an isolated late payment five years ago.
. Reduce your credit card balances. Your FICO score takes into consideration how much money you owe on your credit cards relative to your total credit limit.
. Do not close unused credit card accounts near the time you expect a creditor to order a copy of your credit report. This will raise your balance-to-limit ratio.
Order your credit report from each of the three major credit reporting agencies including Equifax, Experian and Trans Union. There is usually a charge to obtain your report, however people who are unemployed, on public welfare assistance or who were declined credit recently are entitled to a free copy of their credit report. In addition, residents of Colorado, Maryland, Massachusetts, New Jersey, Vermont and Georgia are entitled to receive a free copy of their consumer credit report once each year. |
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