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The Importance of Repairing Your Credit You may be wondering, “Why is it important to have good credit?” Or, you may be asking, “Is it possible to fix my own credit?” Well, in today's world good credit is becoming a much needed asset. In today's world your credit worthiness could affect an application for employment (they can and will run your credit many times), also how much you pay when you rent. Credit also affects your ability to setup an account with a telephone company, or open a new bank account. As you can see, in today's world good credit is a vital asset that cannot be overlooked. I know many times you have heard that credit only matters when you purchase big ticket items. Something in the realm of houses, cars, boats, etc. But, this is no longer the case. Bad credit could be the determining factor in you not getting a job, or in you paying higher premiums for services. This can make things harder on you in the long run. This is why it is vital that you not only fix your credit, but maintain it. Plan of Action By this point, you are probably wondering what are my options. The first step in the process is to request your credit report (a physical copy). Most people do not know that they are entitled by the FTC (Federal Trade Commission) to receive one annually free of charge. The FTC has authorized only one site to give the free annual report, Annualcreditreport.com. If you have any questions, I would recommend accessing the FTC website directly. With your report (tri-merge, including all three major credit bureaus) you will be able to see what information is contained within. Many times you will find erroneous information (outdated, or false). What Can I Do If I Find Wrong Information? You will then match up the information with the corresponding Credit Bureau (Equifax, Transunion, Experian) where the incorrect information was reported. With that information you will then write a letter to the respective bureau and dispute the incorrect information. This is only a brief overview of a part of the process. I will go into further depth about the dispute process in a later publication. For now I would like to layout a proper foundation on which we can build. Good credit, why is that important? How is it used? Did you know that your report is available to anyone where you are requesting a line of credit? This means anytime you apply for a job, apartment, and make a big purchase you are giving permission to the creditor to check your report! Through the information presented on your credit report, the creditor will then make a decision as to what type of customer you will be. As you can see, your report plays a big role in not only major purchases, but necessities of life (such as a potential job, and where you stay). By checking a customers creditworthiness a business will determine your ability to pay them back, or if you are dependable (important when applying for that dream job). As you can see, credit definitely has an important role in today's society. In conclusion, maintaining good credit is a must. Make sure you are routinely checking your credit report and score. If there is erroneous information, dispute it yourself or seek assistance. Repairing your credit is imperative, as your credit score can determine access to many things. Gene Barber is a credit advocate of the people educating individuals on the truths behind financial responsibility and accountability. Having issues with your credit or debt? Gene publishes a free newsletter packed with credit tips and debt fixes. Sign up here for free today!
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