Credit is an essential part of life. It can be a valuable tool permitting you to purchase a home or a car, finance an education, or take advantage of special sales and offers. So it is best to know, are you managing your credit, or is it managing you?
Unwise use of credit, however, will lead to financial problems. Knowing your legal rights and remedies is a first step to resolving those problems. The laws that protect you include the Truth in Lending Act (TILA), the Fair Credit Billing Act (FCBA), the Equal Credit Opportunity Act, the Fair Credit Reporting Act (FCRA), and the Fair Debt Collection Practices Act (FDCPA).
Your credit report:
Your credit report is an essential element for a sound fiscal future. Employers, insurance agencies, and future creditors use the report to obtain information about you.
Your credit report is such an important document that the law gives you certain protections against the reporting of incorrect information.
How to obtain a copy of your credit report:
If you were denied credit, you should obtain a copy of your report to verify that the information is correct. You have the right to know which credit reporting agency prepared the report that was used to deny you credit.
Under state law, you have the right to a free copy of your credit report within sixty days of being denied credit. Laws change and there are different laws in different states, so do your homework.
You also are entitled to one free copy of your credit report per calendar year, even if you were not denied credit. Consider requesting a copy every year to ensure your report is without errors.
Correcting your credit report:
Once you obtain the reports check them in every nook and corner for any kind of mistakes. This one way to find out if you are you managing your credit. The reports may be erroneous as these bureaus do not cross check the information provided by the credit companies to them.
Be sure to look for any obsolete information and erroneous account records.
Be painstaking enough while organizing and preparing points of dispute. If there are any false points there you can look to rectify them
If there is incorrect information in your credit report, you may ask the credit reporting agency to investigate.
The agency must investigate your claim within 30 business days by asking the creditor in question to review its records, unless the agency believes that the dispute is “frivolous or irrelevant.”
The credit reporting agency must correct, complete, or delete any information that is erroneous, incomplete, or unverified.
Additionally, negative information that is more than seven years old cannot be included in your credit report. There are several exceptions to this rule; the main one is bankruptcy, which may be reported for up to ten years.
If you disagree with the results of the credit bureau’s investigation, you have the right to prepare a brief statement that explains your version of the dispute. The credit reporting agency will then include this statement with your credit report each time it sends out the report.
If you have credit problems:
Your Credit Score is one of your biggest financial assets. If your credit score is high, your borrowing rates will be low and therefore save you hundreds of dollars.
The big mystery of are you managing your credit, is how to maintain a high credit score? Well if you want to either maintain or repair your credit score, you are in luck, it can take as little as two months to increase your credit score.
Your credit score is based on a few prime factors, payment history, current debt owed, recent credit checks, and registered income. In order to repair or raise your score you may follow a few of the steps provided below.
1.) Pay off all revolving credit cards. Revolving credit cards are like Discover card or any other monthly credit cards. Even though you might pay before the deadline, credit card companies report the debt owed on a monthly basis which may be before the deadline. On your credit score it will not show as bad debt, but it will decrease your overall score.
The standard recommendations are as follows.
- If you have one credit card, pay it off before the months end.
- Second, if you have two credit cards, pay the minimum on both of them and work on paying in full one of them first.
2.) Registered Income. This is your official salary from work. Basically the numbers they crunch are matched with what you earn. If you debt is larger than what you earn, your credit score is lowered.
So, if you are an independent contractor or your income is just a little too low get a part time job. This will rise your potential earnings and increase your ability to repay your debt and therefore increase your credit score.
3.) Check your credit score online with one of the official companies to see what or why your credit score is the level it is. This will help you determine what you can really do to increase your credit score.
4.) Do not apply for every car, credit card, and home that you are looking at as an eager consumer. Because every time you try to purchase a home, car, or get a new credit card your credit score is checked and the crediting agencies lower your score if you have had two or three credit checks within a few months of each other.
5.) Lastly, open a savings account and budget your money accordingly that you will always have extra cash to help in times of need.
Protect your credit score because it shows that you are managing your credit. It can mean everything when buying a home or trying to get some capital for whatever purpose you need it for. It is not hard to raise your credit score, it is hard to maintain it.
If you can purchase a credit score monitoring service.
It will protect you from fraud and help inform you of ways to increase your credit score when needed.
If there is legitimate negative information in your credit report, there is nothing you can do to change it. Negative information includes late payments, bankruptcy, liens, and accounts given to a collection agency.
Negative information in your files does not necessarily mean that you will be denied additional credit. Different creditors review your credit history in different ways.
Credit repair clinics offer to “fix” your credit record for a certain fee. These clinics cannot remove or change correct information on your credit record. You can do at little or no cost anything that a credit repair clinic can do.
Getting off credit card mailing lists
Credit reporting agencies allow businesses to pre-screen your credit report to determine whether they want to send you a credit card offer.
For example, offers from credit card companies that say, “You’ve been pre-approved,” use a pre-screening process.
If you decide that you don’t want to receive pre-screened offers of credit and insurance, you have two choices: You can opt out of receiving them for five years or opt out of receiving them permanently.
If you do not want to allow your credit report to be pre-screened, you can now “opt out” of the process by visiting www.optoutprescreen.com or calling 1-888-5-OPT-OUT.
There is no way to stop all junk mail! But, this step can eliminate offers from companies that use the credit reporting agencies.
Are you ready to increase your credit score? If so, follow the tips recommended to you by Inker Street Consumer Credit Advice.
- For fast and effective credit repair with pay after service and a 100% guarantee we recommend CreditRX America.
- Find A Solution To Your Debt Issues with CuraDebt
If you enjoy reading Are You Managing Your Credit Or Is It Managing You? provided by Inker Street please Like and Follow us on Facebook, Twitter, and Pinterest