A credit rating is the ruler by which all consumers are measured to determine their ability to pay debt against their assets. A credit rating report will show the history of debt and payment, availability of liquid and hard assets, and the extent of liabilities. It is one financial reflection that matters a lot and may mean approval or rejection of fiscal applications. That is how fragile it is and would need supervision to ensure that we are rated and documented accordingly. One good way to access a constant supervision is to sign up for a Free Yearly Credit Report with different companies every four months. That way you can do the following without second-guessing yourself.
Check for Discrepancies and Errors
You may notice a mysterious and unfamiliar account in your report; this should rise up a red flag. It could be a case of identity theft and fraud. Many people get away fraud because reports are seldom requested and inspected. Details should be carefully inspected to detect errors. You may also notice un-cancelled subscriptions and credit cards that have accrued missed payment or compounded debt. Request for a credit report before an application to know what is in your deck beforehand.
Inform and File for Correction
After finding the errors and discrepancies, report these to the agency. When presented with the right data and reasons they will accept and correct errors. You can also file a Notice of Correction which will amend a justification to such accounts. If they do not change it, you could talk directly with the company that filed the data or a Financial Ombudsman. Always make sure you can back up your charges.
Improve and Maintain
Now that you have checked your score, you may be able to identify the areas that affect it. You can work on these areas by paying on time, paying more than your limit to reduce your debts, canceling inactive or old accounts, updating forwarding or mailing addresses, and scheduling your applications for loans and accounts.
Check for Discrepancies and Errors
You may notice a mysterious and unfamiliar account in your report; this should rise up a red flag. It could be a case of identity theft and fraud. Many people get away fraud because reports are seldom requested and inspected. Details should be carefully inspected to detect errors. You may also notice un-cancelled subscriptions and credit cards that have accrued missed payment or compounded debt. Request for a credit report before an application to know what is in your deck beforehand.
Inform and File for Correction
After finding the errors and discrepancies, report these to the agency. When presented with the right data and reasons they will accept and correct errors. You can also file a Notice of Correction which will amend a justification to such accounts. If they do not change it, you could talk directly with the company that filed the data or a Financial Ombudsman. Always make sure you can back up your charges.
Improve and Maintain
Now that you have checked your score, you may be able to identify the areas that affect it. You can work on these areas by paying on time, paying more than your limit to reduce your debts, canceling inactive or old accounts, updating forwarding or mailing addresses, and scheduling your applications for loans and accounts.