Can We Repair Our Credit?

Boss Babe Influencers Credit Repair

Her Credit Matters

CONTENTS

1. WHAT'S ON YOUR CREDIT REPORT?..................................................................

WHAT IS IT?..................................................................

HOW TO GET YOUR CREDIT REPORT..................................................................

WHAT'S ON YOUR REPORT? ..................................................................

2. LOCATE THE CREDIT REPORT MISTAKES..................................................................

WHY ARE THERE MISTAKES? ..................................................................

TYPES OF CREDIT MISTAKES TO FIND..................................................................

TAKE IT STEP BY STEP..................................................................

3. HOW TO CLEAN IT UP ............................................

CONTACTING THE CREDIT BUREAUS.............................................

YOU'VE FOUND THE PROBLEM: NOW WHAT? ................................

4. 10 WAYS TO IMPROVE YOUR CREDIT SCORE.........

#1: MONITOR YOUR CREDIT REPORT ...........................................

#2: USE CREDIT WISELY ..............................................................

#3: PAY YOUR DEBT DOWN ..........................................................

#4: MONITOR AND LIMIT INQUIRIES...........................................

#5: DON'T OVER-OBTAIN..............................................................

#6: DO USE CREDIT ......................................................................

#7: PAY MORE THAN MINIMUM PAYMENTS ..................................

#8: BUILD CREDIT WITH SECURED CREDIT CARDS ......................

#9: KNOW WHEN YOU NEED HELP................................................

#10: LIVE THE LIFESTYLE YOU CAN AFFORD ................................

5. IT TAKES TIME ......................................................

TIPS FOR INCREASING YOUR CREDIT SCORE QUICKLY ................

Your credit report is essential to your day-to-day life, even if you may not realize it at first. Your credit report is used by credit lenders, home mortgage lenders, insurance companies, and even employers when each of them determines if they should or should not work with you. Do you know what is on your credit report? If not, there has never been a better time to find out.

WHAT IS IT?

The first question that must be answered is the most important. What is your credit report? A credit report is a collection of information about you. This information is centered around your specific ability and experience with credit use.

Credit, a form of money given to individuals to spend and repay over time, is given by lenders only if they believe you are an excellent risk to them. Every lender must define what level of risk is acceptable to them, but they base their decisions on the past usage of credit by you. Let's explain. Over time, creditors lend to hundreds and thousands of people.

They develop specific algorithms that help them define who is a credit risk by looking at the patterns in the way that individuals spend using credit. They determine how much risk they will take to work with people. Risk is a calculated tool for lenders. The more risk you are, the more they can charge interest rates and fees.

On the other hand, if there is too much risk from an individual, that individual is unlikely to repay their debts, and the lender will lose money instead of making it. What does this mean for you, though? As a borrower, you need creditors to see you in the best light possible. The lenders to the credit reporting agencies directly report your credit decisions. You obtain a credit card. You use it to make a $100 purchase.

The credit card company reports this action to the credit bureaus, which keep track of all of your activity. You make a payment on time to the lender. The lender lets the credit bureaus know. This looks good to them. Over time, regular payments increase your credit score. You make a late payment on the credit card. The lender reports this to the credit bureaus. This looks bad. Just one late payment will remain on your credit report for up to two years and can drop your credit score.

This record is ongoing from the time you first get some credit. The more good notches you get from your creditors, your credit score is better. You may be wondering what a credit score is, too. A credit score is a numerological representation of the credit report. The credit bureaus take all the information on you and put it into that complex algorithm to get a number representing your credit usage. Credit scores can be under 350 and up to 800, depending on the credit bureau.

The higher the score is, the better. This shows the company that you are a reasonable credit risk. High credit scores mean More lenders willing to give you credit, Lower interest rates on new lines of credit, more ability to borrow at a higher credit limit Lower interest rates possible on credit you already have. The key here is taking your credit score and improving it, no matter where it is right now. You can do this by understanding your credit report thoroughly and by making wise financial decisions going forward.

No instant credit eraser or improvement tool works to move a 350 credit score up to 700. The credit bureaus will not tell you what percentage of improvement you will have if you make specific credit decisions. The fact is, the mathematical formula they use is highly guarded. Instead, you will need several things to see improvement in your credit:

Time, dedication to good credit usage, and removing any inaccurate information on your credit report. Also note that when creditors consider you for a credit card or loan, they most often use your credit score, with a brief look at your credit report. Therefore, doing whatever it takes to get this number up is vital.

HOW TO GET YOUR CREDIT REPORT

To obtain your credit report, you have several options. If you have never obtained a credit report in the past or have not done so in the last 12 months, your first stop should be a visit to each of the three credit reporting companies:

TransUnion: http://www.transunion.com/

Equifax: http://www.equifax.com/home/

Experian: http://www.experian.com/

Visit each company's website. There, you can request a free credit report. Recently, laws in the United States changed to require each credit reporting agency to provide consumers with one free company of their credit report each year.

This is because it is estimated that more than 80 percent of credit reports have errors or missing information on them. Think about what that means: 80 percent of people may be paying too much interest, may not qualify for loans they deserve, or may even be turned down for a job because they have a poor credit score through no fault of their own.

Once you get your credit report cleaned up, it is highly recommended that you invest the time in getting a free credit report at least once per year from each of these companies to ensure that no errors are present. If you would like to avoid paying for additional credit reports, obtain a credit report from one of the credit bureaus every four months. This way, you do not have to pay for the credit report but get the latest information reported there.

You may have already obtained your credit report in the recent past. To get another one, you may need to pay for it. Most often, copies of your credit report are available for under $20, though it may be slightly more if you want to see your credit score. You can purchase the credit report from each of the credit bureaus directly.

Other companies are selling these, but they monitor the security and the overall cost. You can get a credit report for much less if you go directly to the credit bureau. The first time you obtain your credit report to clean it up, it is crucial to obtain a company report from each of the three credit bureaus. As mentioned earlier, you may not need to do this since most information will be the same from each of the lenders.

You must clean up the credit information on all three reports to ensure that your best foot is forward regarding credit usage.

WHAT'S ON YOUR REPORT?

Once you get to the credit bureaus, you must work through the questions they ask. This is important since it verifies that you are the person you say you are. Once complete, you will be taken to an online version of your credit report. You cannot change the information here directly but must go through a specific reporting process. Before you get excited to see your information, you will want to look for specific information. Notice the number of accounts you have: The higher this number is, the more desperate you look to creditors. You do not want a high number.

Notice any delinquent notices or collections notices on your report. These are one of the most damaging pieces of information listed in the report. Locate the credit card accounts listed. You may notice some very old, perhaps even your oldest, credit cards. If they are good reports, for example, not reporting anything in collections or overdue, leave them there! The longer you have bad credit, the more experience you have.

It is a good thing to have older cards, especially with good histories on your account. Do not remove these. Locate the inquiries listed. Inquiries are reported whenever someone requests to see your credit report. There are two types. Some come directly from credit card companies and lenders you have requested credit from.

These are the most important to notice since these work against your credit score. If you have too many inquiries listed, this could mean that you are again desperate for credit. It also drops your credit score. The second type is pre-inquiries, where lenders consider offering you a line of credit. Since you have yet to request credit from them, these inquiries do not count against you. The credit report contains a wealth of information.

Read through it and take notice of the individual accounts. You should notice each account listed, with information including the credit limit, the age of the account, the lender's name and information, and a few greens (or other colored) boxes.

Each month you have the credit account, this box will change in color or mentions. For example, you may notice a streak of green boxes. This means you have paid on time for those months, with one box representing one month. These boxes trail back for two years before they disappear. Take some time to look through the credit report.

Most of these reports are very easy to navigate and only take a few minutes to browse. Each of the three credit agencies has also provided you with as much information as you need on the credit report. You may also find a section where the bureau is telling you why you have the marks you have or the credit score you have.

They may give you specific information on how to improve your credit score, such as: Too many delinquent accounts: making payments on time helps to improve your credit score. There are too many inquiries on your account. There are too few credit card accounts open. This is specific information directed at you.

Use this as a springboard telling you precisely what you need to do to see improvement in your credit score. Only As Good As It is essential to note that your credit report is only as good as what your creditors have reported. There are going to be errors on your credit report. Some will matter, and some may not. The key here is to notice them and to take action to remove them. When you do this, you will find yourself with an improved report and potentially a higher credit score.

LOCATE THE CREDIT REPORT MISTAKES

There are going to be mistaken on your credit report. The number of mistakes is not as important as noticing them. Each of the three credit bureaus legally must consider the information you provide to them about mistakes.

They do not have to make the changes you request unless the credit lender that put the information there cannot prove that it is correct. In the next chapter, we'll outline how to get those mistakes off the report. Before that, you need to know what types of mistakes to look for and why you need to remove them.

Don't skip this step. If you fail to remove all the incorrect information on your credit report, you may not get it as clean as possible.

WHY ARE THERE MISTAKES?

Although some people may believe that mistakes on credit reports are deliberate actions by lenders, this is far from the truth in most cases. In fact, mistakes are mistakes made when someone is typing in information. Nearly all transactions that happen on credit accounts happen through automation.

A computer gets your payment information from a teller who has entered it. This information is reported to the computer holding your account information. The information is then filtered monthly to the credit bureaus, along with thousands of others' information.

Perhaps one time during this process, an actual person notices your information. A mistake can happen from wrong information being put into the computer system or information being missed. It could be that the credit card company's machines read your "9" as a "0," therefore, you were not marked as making payment in full for the month.

Many potential mistakes can happen. Spotting Identity Theft Mistakes can be more severe, though. There are plenty of situations where someone has obtained your personal information and is using it to get credit cards, loans, or even driver's licenses.

This is called a stolen identity. While it may not seem like something that happens often, it does. One report by USA Today estimated that one in four homes has a victim within it from identity theft. Identity theft is one of the most significant problems with credit bureaus today. There are countless cases of individuals struggling to regain their identity, too.

The key here is to keep track of what is happening with your credit report so that you can report suspicious information to the proper authorities as soon as it becomes noticed. The sooner you spot the problem, the easier it is to remove it. If you feel you have been the victim of identity theft for virtually any reason, you should report this information to your local police. Most larger cities within the United States now have task forces capable of helping individuals with this type of problem.

The key is to get help as soon as you notice the problem. Report the problem if you notice any of the following on your credit report, mainly if more than one instance has occurred: You notice someone else's address or an address you have never lived at, especially out-of-state information. You have multiple credit accounts or loans that are neither yours nor have never been.

You find aliases on your credit report and have any above-listed problems. If you are wondering if you should report the potential identity theft, make your first step working with a credit reporting agency. They can often provide the information you need on who obtained the lines of credit.

TYPES OF CREDIT MISTAKES TO FIND

While mistakes do happen, that does not mean that they are irreversible. The following are some of the most common mistakes you will find on your credit report that should be reported to the credit bureau. You should report these to have them removed.

Remember, it only takes a few minutes to scan your credit report, but looking at the details is where you will find the most mistakes. Take the time to review your credit report with your spouse, if you have one, to ensure that the information being reported is accurate, even with their usage of credit that is potentially in your name.

Incorrect Account Information, One of the largest problems individuals have with their credit report is information that is simply inaccurate or does not seem to be their own. Depending on how long you have had credit, you may not remember all of your credit lines. For example, you may have signed up for a store credit card ten years ago and never used it.

As mentioned, older accounts with no bad information (such as late payments and collection activity) should not be removed from your account. This is especially true of open but not used credit accounts. These establish the length of time you have had credit, which is a good thing for most credit scores.

Look at the accounts closely. Is the following information correct: Is the account one that you have opened? If not, and it has a balance, report it to the credit agency. Follow up with the company about the account. Is the account listed providing the correct balance information? The account may be on a list up to two months behind the current balance since lenders report only once per month on the account.

Is the information on the credit limit, credit type, lender, and account holder correct? Your monthly payment may not be accurate, which could stop some lenders from lending to you down the road. Is the payment history accurate? Without including the last two months, is the past payment history right?

Are the payments listed as late that are not? This should be in the report if so. Is there any other information being reported that is inaccurate? This could be collection activity, judgments, information about bankruptcies that is incorrect, or other information. These should be in the report. Missing information is also possible.

This is not a problem in most cases, as no information does not necessarily hurt your credit history. Still, there will be times when you want the most accurate representation. If the account has the wrong opening date, consider reporting this. Go through your credit accounts to find out what needs to be corrected. Report problems through the steps outlined in the next chapter. Old Notations on Accounts Another potential problem you may notice on your credit report is old information.

Much information is available about old debts, accounts, and inquiries on your credit report. What should be there, and when should it fade into the past? While many say you should pay all your debts, it is essential to note the legalities of paying a debt.

If you have a debt that has gone unpaid for seven years, and the lender has not communicated with you over those seven years, you are legally no longer responsible for the debt. In addition, debts can remain on your credit report for up to seven years. After that point, it should fall off your report unless the debt is active, such as a credit card account you are still using.

It is important to know that if there is a debt reported on your credit report where there has been no activity for a full seven years, it should be removed from the report, especially if it is unpaid. If you have a credit card with a good record of accomplishment but have paid it off and no longer use it, this can again serve as a good history for your credit usage and should be in place.

Old marks on your credit report should automatically be removed, but this does not always happen. In the cases where it does not, it is up to you to have it taken off. Here are some notes to remember:

Old debt unpaid where no communication with you should have removal after two years.

Old credit accounts should disappear after two years, though some with good credit history may remain longer (which is good!)

Bankruptcies and judgments passed against you will remain on your credit report for up to ten years. These cannot have removed until after that time. You have the right to dispute claims you find older than you can be. This can be an essential tool for improving your credit report, especially if the older accounts have negative marks. Inquiries As mentioned earlier, you need to monitor the number of inquiries on your credit report.

Inquiries are placed on your report whenever someone requests a copy of your credit report. For example, if you apply for a credit card, the lender will request a company of your credit score and report from the credit bureau to find out how much of a risk you are.

When they do this, after receiving information from you requesting this account, the inquiry is on the credit report. More inquiries can downgrade your credit report. For this reason, be selected to apply for any credit or allow any company to pull a credit report on you. This includes insurance companies and businesses that want you to work for them.

If you spot inquiries you have not approved, you can have them removed from your credit report. It is essential to be sure you have yet to approve this inquiry. To do so, you will need to use the information provided to your advantage. The inquiry will include the name of the company that pulled the report and their contact information. Call them directly and request information about why they have requested a copy of your credit report. They will tell you.

You often will not recognize the actual lender's name on the credit report, but you will be able to remember the transaction after you have called them and asked a question. If you still need to remember this information after speaking with the company, the best action is to report the inquiry to the credit bureau.

They will then force the company to show proof that you requested the inquiry and remove it if it is impossible to verify the information. Credit inquiries will stay on your credit report for up to two years. Be sure to keep an eye on them over time and to report any mistakes you may have. Identity Mistakes While we mentioned identity theft, there may be other identity problems on your credit report that are not nearly as serious.

Here, someone has not stolen your identity but rather spelled your name wrong, given you someone else's address, or otherwise made mistakes with your credit reporting. Many times, these errors are okay. If there is a missing letter in your name, the mistake has likely not affect your credit score.

Still, you should clean up your credit report and remove this information. In the following chapter, we talk about reporting processes for removing credit-related information. The exact process is not followed for identity mistakes such as your name, employer information, address, or other identifiable information.

Instead, you will need to call the credit bureau directly to report these problems. Some of this information cannot be removed from your credit report, and the agency will let you know. Other mistakes can receive attention right away. It may be necessary for you to update your employer information. This is done over the phone once there is proof of your identity.

You can also update your address if it is not correct. You may not be able to remove an address you once lived at, though. If you have never lived at the address, report this to the agency.

TAKE IT STEP BY STEP

Your credit report is the only piece of information that most lenders receive about you when you apply for a loan through them. It is essential to consider what is on your report and what should not be there. Go through the credit report one line at a time.

Printing it out and using the paper version to track your report is often helpful. You will find more than a few mistakes the first time you pull your credit report. It may take you some time to locate them all and to get them repaired.

Over time, fewer will be reported as you are more conscious of who you are giving your credit information. It is essential to review your report at the very least once a year to locate any potential problems. You should report problems as they happen.

HOW TO CLEAN IT UP

Now that you have found the mistakes on your credit report, the next step is to get them off there! The credit bureaus are only collecting information. They always need to see accounts or payments. They do not work between you and the lender, either.

The first course of action for you to take if you notice the problem is to go to that lender and ask questions. This is particularly helpful for recent information or transactions. For example, you may have noticed that payment did not post or that someone had a listing as late when it was on time. Your creditor does have the ability to change remarks left on your credit report. They only sometimes do this slowly, though. It may take until the following report they provide to the credit bureaus.

You must call them and let them know of the mistake. They can then give you instant access to information. Do they have your payment listed as being late? Did they make a mistake in your credit usage? Before filing a claim directly with credit reporting agencies, you should understand this information.

That way, you know the facts and can deal with them appropriately. Calling your creditor and asking them questions about your credit report is an option to consider. They may or may not be able to clear up the problem.

You will also need to ensure that the mistakes are removed from your credit report. Even if they assure you the mistakes will be removed in the next 30 to 60 days, follow up and ensure this happens.

CONTACTING THE CREDIT BUREAUS

In most situations, you will want to work through the credit bureaus directly to have any errors or mistakes removed from your credit report. You can do this quickly right at the company's website. All credit reporting agencies have the process of removing credit mistakes online now. It used to be that you needed to call or mail a letter to the credit bureau to get the process going.

Now, credit bureaus have made the process quite simple to do. You need to sign into the account you have credited when you obtained the copy of your credit report, fill in some basic information, and send it off to the lender. Of course, it is more complex than this, but the process is not nearly as complicated as you may expect it to be.

Go To The Right Credit Bureau The first step is to go back to the credit bureau's website. You will need to report the error to the individual credit bureau that s reporting the problem. For example, if you find a mistake on your Experian account, you will need to go to Experian to have it removed. At the same time, though, realize that if the mistake has been reported on all three credit reports, you may need to file a claim against each one.

This will allow you to remove it from each company's reports. Most credit bureaus require you to create an account and password when you sign in to view your credit report. This is helpful because it allows you to return to your report whenever you need to (they are generally available to you for 30 days from when you have requested them.)

Head back to the website and log in. Once there, you will find a link on the home page; usually, that allows you to "dispute" the report or item. This is generally a link on this page, which will take you to a much more in-depth form to fill out. You will be okay with the process if you have a printed copy of your credit report to navigate where you need to go quickly.

Sometimes, the companies will allow you to click a link located directly next to the report that's been filed. For example, next to your credit card lender's name and account information, there may be a link to dispute a claim. There will be another link on the next lender's information for the same reason. This is one of the easiest ways to report an error on your credit report. Now that you are there, what should you do?

YOU'VE FOUND THE PROBLEM: NOW WHAT?

You know the information being reported about you needs to be corrected. You may be angry and annoyed that lenders are seeing this information and there is no simple way to remove the information. The fact that it will take up to two months to have it removed can also be annoying. Still, the process is in place to ensure that the most accurate information is on your credit report.

Once you have found an error, you must fill out a form stating so at the credit bureau's website. This part is easy. You likely will need to provide the following information: The item you are disputing (your credit card, your mortgage loan, etc.) The reason for your dispute (it wasn't late, the information needs to be more accurate or complete, etc.). Any additional information on why this is the case (proof of a canceled check or statements to back up your claim.)

Generally, the information regarding your proof is not collected from you. Instead, the credit bureau will require the credit card company or lender to verify this information. They must prove their claim to the credit reporting agency is valid.

In other words, the burden of proof is on the lender, not on you, the borrower. This is a good thing because it is often more difficult to prove something is true than to prove something is invalid.

Once you file a claim with the credit-reporting agency, the creditor must prove that your claim was accurate. Here is a closer look at the process:

1. You pull a copy of your credit report. You will find an error in your report.

2. You contact the credit bureau and tell them this is inaccurate. For example, it may be an account that is no longer one you have and does not carry a balance though the report says it is.

3. The credit reporting agency will then contact the creditor. They let them know of your dispute with their claim.

4. The creditor must dig through their records and find the information. Generally, this is available on computers and is reasonably accurate. There could have been a mistake when the information was reported. Or, there may be inaccurate information in their system. In either case, they need to show that the information is accurate.

5. The credit lender has 30 days from the time you have filed the complaint to straighten out the situation. Most lenders want to report accurately. Then what? Once the claim is with the creditor, the credit reporting bureau has to wait to hear back from the lender. Is this information accurate?

If so, can they prove it? If they find that the information is accurate and they have proof, the lender's claim is reported to the credit reporting agency, then leaves the information on your credit report. There can be no further disputes against the information after that decision. If you have overwhelming proof of the situation, contact the credit bureau again, requesting help to resolve the problem.

Generally, a paper trail is the only way to disprove their claim. If the creditor comes back and says that they cannot prove the claim they have filed against you, for whatever reason, the credit reporting agency will then remove it from your report. This may help to boost your credit score right away, or it may have no effect, depending on the type of report, the length of time since it was reported, and other factors. The key is that it has been removed, and you no longer have to live with the mistake. If the creditor misses the 30-day deadline for coming back to you about the claim, the credit reporting agency will remove the mark from your credit report as it cannot be proven.

As with the opposite scenario, once this decision occurs, it cannot have a reversal. In any case, within that 30 periods, you will not know what is happening. But, after the report has been decided on, you will. The credit reporting agency will report the information in a letter mailed directly to your home.

This information is usually the final answer to the problem, yet it is nearly always the most accurate result. Making the most out of claims filing a claim against something that has been reported on your credit report may feel overwhelming, but the process is very straightforward and only takes a few minutes to get started. It is not the job of the credit reporting agency to verify the claim further than relying on the information provided to them.

In other words, don't be angry with or treat the credit bureau wrongly as most likely the item was misreported to them. Nevertheless, they are working with you to ensure your credit report is the most up-to-date and accurate as it can be.

Do take the time to be thorough with your claims and be sure to follow up on them. Provide information to the credit bureau about why you feel the information needs to be corrected. "This information is not right." If you type this into the report, chances are good that they will need more information.

You may be required to check boxes to explain the situation further. "This account was closed on May 5th, 2003, after being fully paid off by a check I have the receipt for." This is much more thorough and gives the creditor enough information to track down the problem. You may be 100 percent right in both cases, but it can be difficult to prove if not enough information is available. Be patient, too.

The credit bureaus could be more friendly in providing details about the process and where it stands. Therefore, there is no benefit in calling the company repeatedly and requesting more information. Also, check your other credit reports for the same or similar mistakes. It is a good sign if the error only appears on one report, even though the other two credit bureaus also report on that account.

Yet, the same mistake may have been reported to all three. Go through the accounts and follow up! Finding mistakes on your credit report is vital to improving your credit score and how lenders see you. If you do not take the time to do this, your credit report may suffer. Avoid mistakes. Ensure your credit report is accurate by following this process at least once a year.

10 WAYS TO IMPROVE YOUR CREDIT SCORE

Your credit report is one of the essential tools you have in the financial world. It defines who you are to lenders of all types. Removing errors from your credit report or "cleaning it up" is only one part of the process. You need to ensure that you are doing everything possible to keep your credit report stellar and look great in the eyes of a credit card company or home mortgage lender.

Part of this process is to tackle the errors on your credit report. That is the right place to start since this information hurts you for no real reason. As you wait to find out if the credit reporting agency will remove the errors, take some time to work through the following steps. These ten methods to improve your credit score are straightforward and provide you with the necessary resources.

They may be challenging to do, and most require time. Nevertheless, making key decisions right now will help you to get back on track and have a high-ranking credit score. Keep in mind the importance of a quality credit score.

With many banks and lenders tightening their lending practices, they need to give out the types of loans you may be used to getting with an average or lower credit score. If your score is not in the upper 700s, you may be able to get a home loan with a significant amount down. The days of having a 400 credit score and getting a great line of credit may not be back anytime soon.

Therefore, take steps right now to improve your credit score so you do not have to hope that you can get that home of your dreams.

#1: MONITOR YOUR CREDIT REPORT

As we have discussed, knowing what is on your credit report is the key to managing it successfully. But just pulling your credit report one time will not cut it. You need to know what is happening on your credit report regularly. It is an option to get a copy of your credit report for free only once per year from each credit bureau.

You can get a copy of your report every four months for free. Most of the time, the information included in one will be the same as all three reports. Nevertheless, there can be differences, so you need to be cautious. If you have found very few mistakes on your credit report up to this point, do not worry about doing anything more than what you are already doing.

As long as you are monitoring the report every four months, you should be all right, and you should catch errors often enough. On the other hand, if you have a credit report that has been full of errors, especially those concerning identity theft or larger scale problems with address mistakes and problems with particular creditors, it is best to look for a service to help monitor your credit. These services are available through each credit reporting agency, TransUnion, Equifax, and Experian. There are a variety of types of service and reporting options to consider here. For example, you may choose to have just a copy of your credit report sent to you each month.

You may want to watch your credit more closely and have a new report more often, such as every few weeks. You may want to know your credit score, too. The more often you need to know your credit report information, the more costly the reporting costs will be.

The credit score is usually an additional cost to the credit report. Reporting services like these can range in cost from $10 a month up to $30 or $40, depending on the type of service you select. Choose what works best for your individual needs. It may not be necessary to have a product that provides you with much information or frequent reporting unless you have been having significant problems.

#2: USE CREDIT WISELY

Credit is like a gift. You get it, but only for as long as you take care of it. Stop taking care of the gift, and it will fall to pieces. It is much more difficult to pick up those pieces and tries to put the puzzle back together than just to maintain the gift in the first place. Take credit seriously and only use it when you need to use it.

For example, it is important to realize that credit used during the month should be paid off within the month. That way, you do not pay any financing charges, and your balance remains low. It may be important to know what the credit reporting agencies think is important when it comes to credit reports:

Low balances compared to the amount of available credit Payments are made on time You only have a few credit cards The amount of total debt you have is not too high, or higher than what is considered appropriate for your income level. This is a debt-to-income ratio. It is best to keep the credit you have low in use.

Make your payments on time, and monitor your credit limits as often as possible. Paying off the balance on your credit cards on time is quite helpful for maintaining a low balance and saving yourself a good deal of money in the process. Most of the time, credit is necessary for purchasing a home and car. You will need it throughout life, so keep your long-term financial goals in mind when using credit.

#3: PAY YOUR DEBT DOWN

Like most Americans, you already have a sizable amount of debt. How in the world will you be able to get your credit score up if you are struggling with a large pile of debt? The tips provided here should be a great place to start. The key is to work towards your debt step by step until you can pay it down. In other words, if you have a lot of debt, just start working towards paying it down now. There are two main objectives to consider when paying down debt. Choose the method that works best for you.

1. Pay down your debt pay making the minimum payments on all of your accounts except for the one with the lowest amount owed. Pay this one as much as possible until it is paid off. Then, take all the extra you have (including the minimum payment from the first paid-off account) and apply it towards your next lowest debt. Keep going one by one. The benefit here is that you are paying down your debt quickly: you will see results more often at first, which is great motivation to keep going.

2. Apply the same practice as the last method, but this time, arrange your debts by the amount of interest charged, with the highest debt being paid off first. This way, you can pay down the type of debt costing you the most. Technically, you will pay less on the debt this way, too. In either of these options, stop using your credit cards regularly. Put them away. Save them for a rainy day. Put away $1000 into a savings account for emergency needs. Use it just for emergencies. This keeps you from applying too much debt to your credit cards. Eventually, you cut your debts considerably.

#4: MONITOR AND LIMIT INQUIRIES

As mentioned earlier, inquiries on your credit report will detract from it. It is inevitable to have some, especially if you are looking for new lines of credit. The key is to keep them as low as possible. On your credit report, there is a separation between the two types of inquiries, those that affect your credit score and those that do not.

The goal is to monitor both, though. If you are prone to accepting credit cards if offers are sent to you, sign up for a do not mail registry. You can opt out of future credit card offers by visiting the Consumer Credit Reporting Industry website at OptOutPrescreen.com.

You can also locate the Federal Trade Commission for your state and request that these offers stop that way. While watching your credit report, keep an eye on the credit inquiries, too. You have to ensure that those that count against you are monitored.

Report anything that should not be there. In addition, if they do not come off your report within two years, these, too, should come to the credit reporting industry. What about the way that you use those credit inquiries? The best way to keep them off your credit report is to ensure you are not over-applying for lines of credit. Here are some tips:

Choose one or two cards to apply for at any time. Limit the number of applications you file within 3 to 6-month periods. When you are shopping for the best insurance or credit card, ask for quotes from the service providers without allowing them to pull a credit report. Let them know the approximate credit score you have. This will allow you to compare several lines of credit or insurance companies without subjecting your credit report to too many inquiries. Again, obtain quotes for loans based on your approximate credit score for larger loans, such as a home mortgage or car loan. This also protects your credit. Many lenders allow you to do this right online. If they do not, look elsewhere for the loan you need.

#5: DON'T OVER OBTAIN

Lenders are often willing to give you an unlimited amount of credit. Beware of this. Lenders may see your credit report and believe you are a reasonable risk.

They may need to realize that three, four, or more credit lenders have also noticed this and offered you lines of credit. It is easy to get too much credit. You may think, "is there such a thing as too much credit?"

The answer to this is yes! Lenders will begin to freeze up on you if you have too much credit. The problem is the credit-to-income ratio, or the amount of money you bring in with the amount of potential credit you have available.

If you have too much credit, the lender may determine that you are too risky to lend more money to, even if you have a lot of open, available credit. In this situation, you may not have a problem unless you want to get a large loan, such as a home loan or a home equity line of credit. In these situations, you may be limited.

Obtain only the amount of credit that you need to have. Even if you get offers from various other lenders over time, you can get some of them! In situations where you receive an offer for a lower interest rate than the rate you are already paying, consider closing the original line of credit before accepting the new line of credit. If the account will close after you pay it off entirely and it is not one of your oldest credit cards, you may find closing it an easy decision.

#6: DO USE CREDIT.

You need clarification. Didn't we say not to use credit but to pay down your debt? This is true and should be something you spend a lot of time doing. If you are carrying debt month to month, it is likely costing you a great deal of money. Paying down your debt as much as possible is necessary to improve your credit score.

The problem you may encounter is that once you have paid off that credit, you have no real credit history for the current period. So, what do you need to do? Work to pay down your credit. If you are carrying debt month to month, pay it off as quickly as possible.

You will want to maintain only lower balances whenever it is possible to do so. Once you have it down to a level you feel comfortable about paying off within a month, use your credit again. However, there are some stringent guidelines to remember here:

1. Only make purchases you can pay off within the month. You want to get the bill and pay off the entire balance.

2. Know your grace period or the amount of time you can borrow money without accruing any finance charges. Most lenders have a 25-day period between months that allows you to use the credit line and pay it off without incurring any finance costs.

3. Use credit only when you need to. Instead of making large purchases using credit, use it for costs you are confident you can repay each month. For example, you may use a credit card for your gas purchases throughout the money, knowing you will have the funds to repay the debt.

This allows you to accumulate no debt month to month. Credit card debt is not a good thing. Still, you will need to use credit from time to time to have a good credit history. Show that you are a good credit risk by making payments on time each month to pay off the total amount of money you borrowed throughout the month.

#7: PAY MORE THAN MINIMUM PAYMENTS

One of the mistakes many people make is to make payments on their accounts but only to make minimum payments. The minimum payment on your account is the worst, besides no payment at all.

Even paying a few extra dollars is better. Here is why. If you pay just the minimum payment on a loan, you will likely pay that debt for years longer than you need to. On a credit card, borrowing just a few thousand dollars may mean only paying $50 a month to repay this debt. But that minimum payment is only a fraction larger than the finance charges for each month. You will remain on loan for ten, twenty, or even thirty years, depending on the debt amount.

For this reason, it is significant for individuals carrying debt month to month to pay off that debt as quickly as possible by paying more than the minimum payment. Look at it another way. You may not have thought about paying extra per month on your mortgage payment, but this, too, can help you.

For example, if you pay a few hundred dollars extra each month on your loan, or you may make payments every other week rather than once a month, you could cut five to ten years off the loan's length. This also means savings of hundreds of thousands of dollars in interest charges. Use a credit card or mortgage calculator to figure out what you are paying to borrow those funds and pay them back so slowly!

#8: BUILD CREDIT WITH SECURED CREDIT CARDS.

Perhaps you already have bad credit. Cleaning up your credit card and removing old, outdated information should help. You may also improve your credit score if some creditors cannot prove your obligation to pay the loan. Yet, even when you clean up your credit report, the damage to it over this period can be harsh to your credit score. One way to boost it is to obtain new credit and work towards showing that you are a good risk by making payments on time and keeping your balance low. Like all good catch 22's, though, to build credit means that you would have to have access to it. The good news is that there are options available for doing just that.

These are called secured credit cards. Your goal is to find a secured credit card that reports to credit agencies. Many now do this since it is far more attractive to the borrowing when it does. A secured credit line is quite different from a standard line of credit.

Here, the credit line you are given is based on the amount of cash you have paid towards the card in the form of a deposit. For example, you pay $1000 of a deposit and have a $1000 credit line. You'll use it and make payments as you do with a standard line of credit. The difference here is that your balance is there for "just in case" situations where you may default on the loan.

The lender has protection from this. At the same time, your good credit habits are also helping you to get a better credit score since the card is reported monthly to the credit agencies.

#9: KNOW WHEN YOU NEED HELP.

There will be times when you just cannot get out of debt on your own. You may struggle to make enough money to meet the minimum payments, not to mention paying more than you owe. If you are struggling with your debt load, seek help. There are a variety of for-profit and not-for-profit options available to help you to get out of debt.

You need to get out of debt first for your credit to improve. If you cannot do this on your own, the next best option is to secure the help of a professional who can work with you and your lenders to get the debt paid. One option to consider is debt counseling. These professionals work with your lenders to get a lower monthly payment, reduce the interest you charge, and sometimes lower the amount you owe.

You'll be on a monthly payment plan requiring you to make a set amount paid each month. That single payment is divided by the counselor and paid to each of your lenders monthly. Debt counseling can initially hurt your credit score, but over time, you will pay down your debt and find your way out of the debt hole. Your credit score may increase because you are paying off the debt.

Bankruptcy is another option for some when all hope is lost in making monthly payments. Take it easy. Bankruptcy will put a black mark on your credit report for the next ten years! That is a long time to have a hurt credit score with no way to clean it off your report.

#10: LIVE THE LIFESTYLE YOU CAN AFFORD

Perhaps the most important bit of help is this simple sentence. You need to live the type of lifestyle that you can afford, not one that is reliant on credit cards. The sad fact is that if you take away all of your debt, you probably would have much more money per month to buy what you want and live the way you want to.

The key is not to have to pay the finance charges that often hurt the average consumer. Determine your lifestyle by using a cash-only system for at least one month. For that entire month, do not make any type of charge to your credit cards.

You will still need to pay them on time, including your mortgage loans. Instead of charging dining out or purchases to a credit card, only use cash. At first, you may find this very limiting, but imagine if you had all the money you are currently paying toward your monthly debt.

What you may find is that it is not only affordable to live on cash only, but it may be a better lifestyle with less stress. Making good decisions about credit is difficult to do, for anyone. Yet, you can easily accomplish this by spending your time making good financial decisions overall.

The process will allow you to walk away from finding yourself in a financially tough situation rather than a financially poor situation. Use these ten tips to help you clean up your credit debt, not just today but going into the future, too.

IT TAKES TIME

One of the hardest elements to come from the entire process of improving your credit report is that it takes time. Sometimes, it takes a long time. Those who find errors on their credit report will have the ability to remove them, which may or may not give you a boost in your credit score. This depends greatly on the type of mistake you have removed. For example, if you remove problems with:

Your name

Your address

Past employers

Other personal information,

Chances are good that you will not see any change in your credit score since these items do not have a direct link to them. On the other hand, if you find mistakes and have them removed like those in the following list: Debts that are not your own that are removed, Outdated debts that are negatively impacting your credit score, Collection accounts or judgments removed, Inquiries Late payments, missing payments Over the limit report or similar types of items, you should see a rise in your credit report for doing so. The increase is unknown since these complex formulas are not made public knowledge. The key is that over the long term, such as in the next six months to a year, you will no longer feel the effects of the harmful mistakes, and this will help to boost the ongoing credit score you have.

TIPS FOR INCREASING YOUR CREDIT SCORE QUICKLY

There is no one way to raise your credit score. It is a combined effort of everything you do throughout your life having to do with credit. The key here is to make the best choices overall. It is difficult and time-consuming at best, but ultimately it will give you the best results overall. Maintaining your credit report and credit score is perhaps the longest journey you will be on throughout your life. There is never a time when you can take a break. Some things to do to ensure the highest credit score is within reach:

1. Get your credit report clean of errors by reporting and disputing these with each of the three credit reporting agencies, TransUnion, Equifax, and Experian.

2. Keep an eye on your credit report. At least once a year, pull each report, examine it for potential mistakes, and keep it clean.

3. Don't make payments late. One of the worst things you can do is send your payment late. This is an instant warning sign to potential lenders: he or she is struggling with debt; beware! Send your payment at least a week before the due date to ensure punctuality.

4. Do not go over your credit limit, like late payments; this is another instance of struggling to make payments.

5. Keep your debts low. Pay off as much of or all of your debt each month. This shows lenders you are at a reasonable credit risk and that you deserve more credit available to you.

6. Stay on top of the changes credit bureaus and Congress make t,o credit reporting. Small changes can make a significant difference in the way credit reporting happens and , therefore, what your credit is.

7. Use credit when you need to, but keep yourself in check.

8. Don't request multiple lines of credit at one time. When shopping for the best rates on a credit card, insurance product, or home loan, use estimated credit scores rather than allowing several companies to pull your report.

9. Keep your personal information personal. This includes your Social Security Number, address, and historical information about you. Report any risks of identity theft as soon as you see them. 10. Live within your CASH means. In other words, make sure that 90 percent or more of your purchases are made using cash.

Get off the credit lifestyle, and you may find that your credit score goes up and you have more money in your pocket each month. It does take a long time to build a successful credit report, but the process itself teaches you how to use money wisely.

It does not matter what has brought you to this point today. The only thing that truly makes a difference is what happens tomorrow. Clean up your credit report first. Then, and ongoing, maintain it and use credit wisely. You will then have more doors open to you each month, and you will have credit available to you when you need it.

Trina Green