CREDIT SCORE REPAIR

If you have ever applied for a loan or insurance or a credit card, you have a file called your Credit Report.  This score is very important especially when applying for a mortgage.  You are entitled to one free report annually.  Call 1-877-322-8228 or go to www.annualcreditreport.com  Complete the Credit Report Request Form and mail to

Annual Credit Report Request Service

P.O. Box 105281

Atlanta GA  30348-5281

You will need to provide your name, address, Social Security Number and Date of Birth.  Also a security question that only you would know.

9 TIPS TO A GOOD CREDIT SCORE:

1.       REVIEW YOUR CREDIT REPORT

2.      REPAIR ANY MISTAKES (Contact the consumer reporting company in writing explaining the error and back it up with copies of documentation that support your claim. Include a copy of your report highlighting the error and send the materials by certified return receipt requested.  Make sure you keep all originals and make copies of everything you send.

3.      PAY YOUR BILLS ON TIME.   This accounts for 35% of your score.

4.      INCREASE THE LENGTH OF CREDIT HISTORY.  Do not cancel cards and open new ones.  This is 15% of your score.

5.      KEEP YOUR CREDIT BALANCE LOW.  Typically this should be 25% of your available credit.  This is 30% of your score.

6.      KEEP NEW CREDIT REQUESTS TO A MINIMUM.  This is 10% of your score.

7.      BE AWARE THAT PAYING OFF COLLECTION ACCOUNTS DOES NOT REMOVE THEM.

8.      WORK AT PAYING OFF DEBT RATHER THAN JUST MOVING IT TO OTHER CARDS.

9.      BEWARE OF CREDIT REPAIR SCAMS.  The Federal Trade Commission has a website that will take you to a reputable credit counselor.  www.ftc.gov.com

The best advice I have found out there is to have a budget and stick to it.  Know your income and make sure your expenses to not go over that.  Track where your spending goes and cut out the non essentials.