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    Managing  Your Credit
     
     
    Understsanding Credit Scores
     
    Figuring out how credit scoring works and understanding what your individual score means, is a big step towards improving your overall credit rating. As your credit information changes, so does your credit score. 
     
    FICO scores are the credit scores most lenders use to make lending decisions about you. The higher your score, the less risky you are in the eyes of a lender.
     
     
     
    Knowing what is in your credit puts you in control. You can obtain a copy of your credit report from any of the tree major credit reporting agencies: Equifax, Trans Union, and Experian. It is a good idea to get a copy from all three agencies or obtain a consolidated credit report, especially if you are thinking of buying a house or refinancing. Many mortgage companies will use data obtained from all three agencies when reviewing your credit history. Review your credit report thoroughly; make sure to correct any errors and incomplete information. Such as:
     
    • Incomplete or wrong name, address or phone number
    • Wrong social security number or birth date.
    • Missing, wrong, or outdated employment information
    • Incorrect marital status – showing single when married or vice versa
    • Bankruptcies older than 10 years or not identified by the specific chapter of the bankruptcy code.
    • Judgments, lawsuits or delinquet accounts that are older than seven years.
    • Premarital debts of your current spouse attributed to you.
    • Lawsuits you were not involved in. 
    • Paid judgment, tax or other liens listed as unpaid.
    • Closed accounts still listed as open.
    • Accounts closed by you, that don’t indicate “closed by consumer”
    • Incorrect aliases
     
    By doing this, you are making sure that your credit history is accurate and that your credit score is correct. When reviewing your credit report, pay particular attention to the reason codes, so that you can improve them. Learning these codes is fundamental in the improvement of your score later on.
     
    Information, and tools to help you monitor your financial situation.
     
    Protecting your Credit score
     
    Managing your credit responsibly means:
     
    • Pay your bills on time — Late payments and accounts referred to collections agencies can have a major impact on your credit score.
    • Keep balances low on credit cards relative to their credit limits — High outstanding debt can affect your credit score.
    • Pay off debt rather than moving it around — A reliable way to improve your credit score is by paying down your credit card debt.
    • Don't open new credit cards just to increase your available credit — This approach could backfire and actually lower your credit score.
    • Open new credit accounts only as needed — A cautious approach to taking on new credit will help you maintain a good score.
     
     
     
    Identity Theft
     
     
    Regardless of how careful you are, you're always at risk of identity theft. Information may be taken from your personal property, or information you have with a business may be compromised. Monitoring your credit report is an excellent way to see the activity going on in your name for accounts reported to the credit age.
     
    Here are some ID theft warning signs to keep in mind,
     so you can protect yourself:
     
    • Your monthly credit card and bank statements suddenly stop arriving. Pay attention to when you normally receive bills and statements. (This can be accomplished by keeping your bills organized and in one location, file, etc.)
     
    • You are denied a credit card for no apparent reason. (Never accept a "no" with out asking "why" . Whenever you are denied credit,  you are entitled to a FREE copy of the credit report from the credit bureau used to review your credit ...call and get a copy!... You are also entitled to 1 free credit report per year from the major bureaus.) 
     
    •  You begin receiving bills from stores where you've never shopped. Someone may be shopping in your name.
     
    • You get calls from credit collectors on debts you didn't incur.
     
    • You see unauthorized charges on your credit card, long distance, or bank accounts (Do not ignore ...no matter how small the amount... this could be a result of stolen mail).
     
    • You notice checks missing from your checkbook. (Learn to reconcile your Checkbook ... most Banks provide a bank reconciliation form with you bank statement.
     
    • A collection agency contacts you regarding payment on an account that isn't yours or you no longer have.
     
    • Your credit report shows accounts you did not authorize or accounts that have turned over to collection agencies even though you have been paying your bills on time.
     
     
    Remember: Credit Card Companies make mistakes too ... most companies will be happy if you bring errors to their attention.
     
    Credit Reporting Agencies
     
    Trans Union Customer Relations
    P.O. Box 2000
    Chester, PA 19022
    1-800-888-4213
     
    Experian
    P.O. BOX 2002
    ALLEN TX 75013
    1-888-397-3742
     
    Equifax Information Services, LLC
    P.O. Box 740256
    Atlanta, GA 30374-0256
    1-800-685-1111
     
     
     
    Improving your credit score does not happen overnight, it usually takes a year of good credit management. Improving your credit score takes commitment and work.
     
     
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