June 18,2009

• Fixing Your Credit, Pt.2
    Reviewing Your Credit Report.

  Previous...

  Begin your repair process by thoroughly reviewing each of the three credit reports. You will most likely see some differences between the three credit reporting bureaus. One may have an open credit card account, loan, or other item that the other two may not. This is usually a result of the reporting institution that may not report to all three. Check each account to assure the balance, monthly payment, and terms are accurate. Most financial organizations report monthly, however, some only report updates when there is an existing balance. With the massive incidents of credit card theft, you’ll want to make sure the balances measure up accurately. Credit balances consists of approximately 30% of your FICO score. If there is a discrepancy, in addition to disputing the item, you must check your statement to assure no unauthorized charges exist. Credit card theft along with identity theft are two of the fastest growing criminal activities plaguing our nation today.

  A benefit to ordering the unlimited access to your report is that you can easily return often to dispute charges right online. Of course, you’ll have this option available while viewing the free report as well. As you review your reports, look for any accounts including credit cards, loans, and mortgages that may not belong to you. If you’re not sure an account is yours, dispute it. Look over the payment histories of all accounts. About 35% of your FICO is involves your payment history. You want to make sure there are no inaccurate reports. If the report indicates you have been paying your credit card payments or any other loans late and you believe this to be false, dispute it.

  You’ll also want to check the available credit on your credit card accounts. This is important because the bureaus use this number to calculate your debt ratio. It will make an impact on your final credit score and banks also use this number in determining your risk factor. Again, if there are any discrepancies; dispute it!

  Continued...
  Back to Articles Main Page