IMPROVE CREDIT RATING

You may have seen some guys who are relaxed when it comes to their credit reports while other have shivers down their spine. But financial experts believe that individuals can easily manage their credit reports or credit history if they confront the basics with planning and maturity.

This article is basically an endeavor to guide you through the formalities of a credit report. First of all you need to understand what a credit report is and why you need to have good credit rating and avoid bad credit. A credit report can be for an individual as well as for an entity.An individual’s credit report is basically a piece of financial information about the borrower. This financial history and information is essential especially when someone needs to apply for a loan, any kind of insurance (auto, home, personal); or to prove credibility to a landlord for renting an apartment.

The information on the credit report is formulated by the collection of requisite information on individuals from various sources by the credit reporting agencies. Law permits them that they might also obtain information from other sources such as public records. Credit reporting agencies may also gather information from creditors such as, banks and credit card issuers.

A characteristic credit report contains the following information:

1. Personal Data: Information regarding personal identification such as name, social security number, date of birth, address, etc.
2. Credit History: This includes a list of current and past creditors, credit terms and limits, and how an individual has repaid past debts.
3. Inquiries: A list of requests for credit reports,
4. Public Records: Information such as bankruptcies or lawsuits.
5. Personal Statement: A limited statement where an individual can explain his position in a dispute with a creditor.

Any individual can obtain a copy of his/her credit report by submitting a written request to one of the three national credit reporting agencies. These copies of credit reports are available with each of the three national credit bureaus in lieu of a small fee per each copy requested.

If an initial review of your credit report reveals inaccurate information you should contact the credit bureau in writing, explaining as fully as possible why you believe the information to be incorrect. Your correspondence should have an authorized signature and contain the following information:

1.Name: Including maiden name or other names used.
2.Date of Birth: Place of birth is also helpful.
3.Social Security Number
4.Current address: As well as former addresses for the past five years.
5.Spouse’s Name: If married.

This is for your information that investigation of a disputed item may not result in a change in the credit report. In such a case the individual may ask the credit bureau to include in the file a statement regarding the disputed information.

Also, there are provisions that if the data in dispute is found to be incorrect, resulting in a change in the credit report, the credit bureau will provide a free copy of the corrected report to the individual.

Related links:

FREE copy of Experian credit report

Equifax Triple Protection Watch