Family LIving News Release

Improving Your Credit and Credit Score

If you are turned down for credit, there are some things you can do to improve your credit and credit score.

Request a copy of your credit report. Everyone is entitled to a free copy if they are denied credit or refused an apartment, insurance or job in the past 60 days. In addition, everyone is entitlted to one free report per year from each of the credit reporting agencies. You can obtain your credit report by logging on to www.annualcreditreport.com to requst your free report. This is the only webiste that does not charge for credit reports. You can also contact individual agencies at the following: Experian, 888-397-3742, www.experian.com; Equifax, 800-685-1111, www.equifax.com; or TransUnion, 800-916-8800, www.transunion.com.

Check for errors; errors on credit reports are very common. Credit reports include information about any debts that went into collection or any old debt that has not been repaid. Other information that would be considered negative to a credit report includes late payments on loans or credit cards, bankruptcy, foreclosure or court judgments.

If you find incorrect information on your credit report, fill out a dispute form from the credit reporting agency or write a letter explaining the mistake. The credit reporting agency has 30 days to review the dispute and take action. It cannot put disputed claims back on the report unless the company that provided the information confirms the claim's accuracy.

The agency will also give you contact information for the company that reported the claim. If the claim is accurate, it goes back on the report. If it is not accurate or the company that made the claim does not substantiate it, the claim is removed from the report and you are given a corrected copy of your new report.

Don't max out your credit cards. Credit cards charged to the limit can negatively affect your credit. Pay off the balances before you apply for new credit.

Ask only for the credit you need and apply to only once source at a time. If lenders see that you have filled out too many credit applications, they may turn you down. When you fill out an application, your credit report will show if you were approved or not.

Your credit score is one of the most important pieces of your credit history. it is calculated from a variety of different information: 1) payment history (most important factor); 2) amounts owed (second most important factor); and 3) length of credit history; 4) new credit; and 5) types of credit used.

If you don't have a credit history or are in the process of repairing your credit, there are a few things you can do to build a good credit history.

Get a secured credit card from you local bank - one that is backed by the money to have in your account. Be sure to check that your bank will report to one of the credit reporting agencies.

Find someone to cosign a loan for you. A friend or relative with good credit is a good choice. If you do this, make sure that you make the payments and make themon time or you will not only damage your credit, but also that of the cosigner. In addition, the cosigner will become responsible for the payments.

Get a credit card from a local bank, credit union or department store. As with the secured card, check to make sure the card issuer reports to the credit reporting agencies.

Consumer Action (www.consumer-action.org) can provide you with more information. If you wish to file a complaint, go to the Federal Trade Commission website at www.ftc.gov. For more information on managing your finances, contact Gail Peavey, Family Living Agent, Polk County Extension Office at 715-485-8600.