Better Finances Come With Good Credit
The first step in turning your financial life around is to start with your credit. If you have large debts, you have to settle them before you can move forward with saving money or making large purchases. This article will give you the information you need to take back control of your finances so you can someday have financial freedom.
What does good credit mean to you? If you ever need a loan, such as to buy a house or a car, your credit will determine your interest rate and if you can get the loan. If your credit is bad, no one will give you the money as it is unlikely you will pay it off. If your credit is good, not only will you be approved, but your interest rates will likely be lower. If you can deal with your credit and get it back on track, you will find that future financial situations become easier.
The first step is to figure out who you owe money to. Make a list of all your debts, how much is owed, what the interest is and how you are currently paying it off, if you are. Once you can visualize all the money you owe, you will be better able to make a plan about paying all that money back. Be sure to make a hard copy of this list so that you can refer to it later.
Now you need to request your credit reports from the three credit bureaus. This can be done for free once a year. All you have to do is visit AnnualCreditReport.com, follow the instructions, and then print off your credit reports. The next step is to check them for errors carefully. This isn't just to ensure someone isn't using your identity, but also to check for mistakes that banks or other financial institutions may have made.
When you find a mistake, you need to write to the credit bureau which has the mistake on your report. Detail which entry on your credit report is wrong, what the mistake is, and any other information you have on the situation, including paperwork, if you have any. Also mention that you want the mistake corrected or deleted, depending on what the problem is. The credit bureau will have to investigate the problem within a month of receiving your letter. If you need help crafting your letter, look for a "sample credit report dispute letter" online.
The next step is to contact the company which filed the mistaken entry on your report. It is important to let them know that a mistake was made so that it won't happen again. They may not realize that they have done anything wrong, so let them know, in writing, as soon as possible.
Simply dealing with your credit problems is a good first step to taking over your personal financial situation. Whether you plan to get married, go to school or buy a house, you need to have good credit to start off on the right foot. Use these tips to ensure you control your credit problems once and for all.
