Credit Information and Resources

Cleaning Up Credit

If your credit is less than perfect, you're not alone. Every day thousands of people face the same problems and issues that come from having bad credit. They are often turned down for loans, are offered only the highest interest rates, and are asked to make a deposit before they are allowed to open service accounts such as those for cell phones and utilities. Many companies offer programs and books that, for a fee, will "erase" your bad credit.

Don't fall for it! There is no magic wand that will suddenly fix all your credit problems. Good credit comes from good credit practices over time, so we caution you to be very careful when checking into these credit repair companies. Often times, the remedies these companies provide are simple steps you could perform yourself with time and effort. We have some suggestions for those of you looking to improve your credit standing.

· Find out about your credit history with all three national credit bureaus. You can do this by purchasing a 3-in-1 Credit Report. This complete credit picture will allow you to check your entire report for inaccuracies. Any inaccuracies you find should be corrected immediately by contacting the creditor with whom the error resides. For more information on disputing errors, go to TrueCredit.com.

· Don't apply for many credit cards over a short period of time, or apply for a card you don't think you'll get. Many inquiries look bad and can impact your credit in a negative way. However, it's still okay to shop around for a loan when you're making a large purchase such as a car or home. As long as your inquiries for an automobile or mortgage deal are all within a 30-day period, many credit scoring programs and creditors will disregard the multiple inquiries or consider them as only one inquiry.

· Keep track of what debt level compared to your available credit. If you have several cards that have balances close to their limit, creditors might worry that you are living beyond your means. In general, debt of 75% or more of your total available credit does not look good.

· Close any accounts you aren't using. Lenders look at the total damage you could do if you decided to go on a serious spending spree. So the less accounts you have open, the less of a risk you are. On the other hand, lenders want to see your ability to handle more than one account. Aim for a total of four cards (including gas and department store cards).

· If you have some serious credit issues from the past, or if you've only had credit for a short time, it's a good idea to open a gas, department store, or credit card account (there are usually special cards for high credit risk customers). By using the card regularly and making your payments on time, you will establish yourself as a careful credit user.

Once you've started to mend your credit, it's a good idea to keep aware of what's happening with your credit report. The best way to do this is with TrueCredit's new Credit Monitor. When you enroll in Credit Monitor's yearlong program, you will receive weekly emails alerting you to any changes in your credit report. For more information on Credit Monitor, click here.

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