Friday, April 9, 2010

About Credit Scores

A megaphone in a yellow icon symbolizing hype;...Image via Wikipedia

When people see and hear that some items are sold for credit, they jump at the opportunity. It's not strange to state that there are lots of people who do not have sufficient cash on hand to pay for their expenses. And buying the items on credit is their easy solution.

When you buy things on credit, you also own the responsibility to repay what you've purchased--and the time will come (usually the end of the month). The creditor expects you to make payments on a specific date, something that you should not forget or overlook. Otherwise, your credit report will show a negative mark.

In order to build your credit history, you must see to it that you keep a high score. This will be of much help when applying for loans, mortgage, credit and debit cards, and even promissory notes. Bear in mind that since most major purchases in our lives are made on credit, we must show a good credit standing before applying for the purchase.

Three agencies are responsible for gathering people's credit history. Most establishments extending credit rely on these agencies reports.

All of us are plain human beings that constantly make mistakes, but it is not a valid excuse for not paying your debts on time. For those who are already damaged by bad reputation, you should re-establish and repair and regain good credit. And it is equally important to keep an eye on your scores; that is, to keep a clean credit docket. Get a report at least once a year. Many services online offer free information directly from the three agencies.

TransUnion, Experian, and Equifax are the three major credit tracking agencies which are responsible for gathering your credit information. You should find sites which offer free copies of your score. These scores are simple to understand, and some even provide detailed explanations and suggestions to maintain a high score.

So, get a copy! Getting a copy of your report online is the way to go; and it is delivered to you quickly, securely, and safely. With the speed of the Internet, you should get access to your report immediately, or within twenty-four hours at worst.

Check carefully each line of the report. You will easily see that there are mistakes. Once you identify the errors, confusions, misinformation, and other negative data, ask the agency to act fast to correct them. Mistaken ID is usually the most offending and cumbersome problem. Some first and last names are so common that the bureaus easily confused one individual with another.

A friend of mine got the shock of her life when she found in her report that she had failed to pay $39,000 on the purchase of an automobile in the state of Oklahoma. Since she had never even visited Oklahoma, after a few months of letter writing and telephone calls, she was able to prove that the entry was a case of mistaken identity.

While most people go through life without bothering with credit reports, those individuals who are responsible, careful about their history, and wise about their future, will pay attention to their credit history. When the moment comes that they need credit--their good reports will speak highly for them.

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Senada Selmani, model

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