Your credit report gives you your credit rating. Your credit
report lists all of your outstanding loans and debts (including
credit cards), as well as any information about debt default.
You may think your credit report is in fine standing because you
*eventually* pay off your bills, but each time you're late, your
lateness appears on your credit report. You'll feel the effects
of a good or bad credit standing when you apply for an apartment
lease, a mortgage, or any other loan. A good credit rating will
go a long way toward assuring you a space in your dream apartment
or a plot of land that's all your own.
Establishing Credit
If you've never had a credit card, it may behoove you to get
one just to establish credit. If you don't qualify for a bank's
credit card, apply for a department store card (they have much
lower standards for successful applicants). Keep in mind that
if each of you has credit cards in your own names, you each have
your own credit report. If you have any joint cards, the card
will appear on both of your credit reports.
Hot tip: Keep one loan or credit card in each of your names,
so each of you establishes your own credit history. This way,
if one spouse dies or you divorce, you won't have any trouble
maintaining or using your credit.
Your Credit Report
If you're interested in seeing your credit report, you can order
a copy from any one of three major credit-reporting agencies.
There are certain circumstances, including denial of credit within
the past 30 days, in which federal law states they must give you
a free copy of your credit report. You can also request a report
directly from Experian at (888) 397-3742, Equifax at (800) 685-1111,
or TransUnion at (800) 888-4213.
You can also get a free credit report just by asking. The way
this works is that companies will allow you to get a free credit
report and also give you a 30-day trial of their credit monitoring
service. There is no obligation to join the program. You can cancel
at any time. Many people get there credit report and cancel, and
others enjoy the credit monitoring service and sign on. Either
way, you get a free credit report.
Correcting Your Credit Report
If you see anything you don't recognize on your credit report,
someone may be using your credit information for fraudulent purposes.
Notify the credit bureau at once and call any creditors that filed
complaints or incorrect information. The credit bureau can attach
a fraud statement to your credit report and let you know which
creditors to notify, and a creditor can notify credit bureaus
that the information is incorrect. Keep track of your efforts
in writing. According to federal law, the credit bureau and any
creditor that filed incorrect information must resolve the issue
within 30 days.
What If You Have Bad Credit?
If you've racked up a lot of debt, missed payments, or made late
payments, there's no way to erase this information from your credit
record. Any late payment can stay on your credit rating for up
to seven years, even if you've completely paid off the creditor.
What you can do is take stock of your money matters and start
working to pay off your debts. If you start keeping meticulous
financial records and paying off all your debts on time now, your
credit rating should be golden in a few years.
