A few simple steps to healthy credit…

Just like you have a physical every year to make sure you’re healthy, you should do the same for your credit score. Here are a few things you should be looking for.

Mistakes

Make sure your personal information is correct and up to date. This includes your date of birth and any other identifying information.

Errors

Even creditors make mistakes, so carefully look over any negative information to confirm that it’s true. They will be required to change any errors that you find.

HINT: If you find an error, send a letter to the credit bureau to make them aware and then send a copy to the credit agency that incorrectly reported it. This will ensure it is taken care of in a timely manner.

Outdated Information

Credit agencies are required to remove information after a specific number of years. For example, if you fall behind on your payments and then correct it, the history showing this is to be removed after 6-7 years. However, it’s important to be proactive and follow up to make sure it gets done.

Fraud

We all know someone who has had their identity stolen and nothing destroys a credit score more than this. Often, it may be someone you know such as a family member or a friend. Make sure you keep your credit information protected, as they may suggest that they just “borrowed” it.

Why do errors on your credit report matter?

Even minor errors like a misspelled name or wrong address can lower your credit score and keep you from getting a loan. This is why it’s important to review it every year and keep it “healthy”. We suggest choosing a day that will be easy to remember, such as your birthday or the day you file your taxes.

Have questions about your credit score? Reach out to us here!