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There's only one method to discover the "health" of your own credit. You have to examine your credit score report. Your credit history is your "consumer identity" that potential lenders uses to judge your own credit worthiness. Use these pointers to give your own credit profile the actual "tune-up" it requirements for 2004. Tip #1- Look for Errors Your credit history or profile is a lot more than just a collection of who creditors are and just how much you owe all of them or have compensated them. The first thing you must do is carefully make sure that your credit statement is accurate. Almost 70% of credit score reports contain mistakes. These errors might be as simple being an incorrect middle preliminary or address. Or it may be as serious as a creditor reporting that you simply were late having a payment when actually you were not late whatsoever. This error may not seem like an issue to you. Nevertheless, to a future lender just like a mortgage company it makes an impact! Carefully examine your credit history and if you discover an error contact your creditor and also the credit bureaus. Capture and correct these types of errors now prior to it hurts your own chances of securing credit later on. Tip #2 -- Correcting Errors The two most typical errors contained in credit file are: 1) wrong accounts information2) incorrect recording recently payments. If you find a merchant account reported that doesn't belong you, you have to contact the credit score grantor or company immediately. Remember, finding accounts you have not personally opened is really a sign of feasible identity theft. Hopefully you'll realize that this error is simply an oversight and never an identity thievery problem. Most often this occurs once they report an account owned by a family member or someone having a similar name in your credit report. If your condition is an mistake in reporting the late payment you will require proof to support your case prior to this error can end up being corrected or eliminated. The most typical error occurs whenever a payment is documented as "late" when it had been actually a present or "on time" repayment. In either situation, the problem can and really should be corrected. You will have to correct the error on paper. Keep a diary or log of calls and communication. The Fair Credit rating Act (FCRA) demands the credit bureaus and also the agency reporting the info to the credit bureau to fix inaccurate information inside your credit report. Consequently, it is essential that you contact both the credit bureau and also the creditor whose information is within dispute. A sample letter is roofed here that will help you in correcting your credit score profile. Make sure you clearly identify the info that you challenge, include copies associated with receipts or paperwork that support your situation. Then request how the information be remedied or deleted out of your file. Send your notice by certified postal mail and request the return receipt in the recipient. Keep all correspondence that you simply mail out. Provide the agencies involved thirty days to begin their own investigation. You can phone them but remember that phoning them doesn't protect your customer rights! You must notify them on paper to protect your own rights. They must notify you from the results of their own investigation. Although the procedure will take period, it's important to complete it. This is the credit profile, your "consumer identity" that's at stake. Don't expect a mistake to correct by itself. At your ask for, the credit agencies must send updates of corrections to your own credit profile to those who have requested your report within the last six months. Should you applied for employment and were rejected because of inaccurate information inside your credit report, you could have the corrected statement mailed to anybody who received a copy previously two years. ++++++++++++++++++++++++++++++++++++ Sample Challenge Letter DateYour Title Your Address Your Town, State, Zip CodeComplaint Division Name of Credit rating Agency Address City, Condition, Zip CodeDear Mister or Madam: I am composing to dispute the next information in my personal file. The items I dispute will also be encircled on the actual attached copy from the report I obtained. (Identify item(s) problematic by name associated with source, such because creditors or taxes court, and identify kind of item, such because credit account, common sense, etc. )This product is (inaccurate or even incomplete) because (describe what is actually inaccurate or imperfect and why). I'm requesting that them be deleted (or ask for another specific change) to fix the information. Enclosed tend to be copies of (use this particular sentence if relevant and describe any kind of enclosed documentation, for example payment records, courtroom documents) supporting my personal position. Please reinvestigate this particular (these) matter(s) as well as (delete or correct) the actual disputed item(s) as quickly as possible. Sincerely, Your nameEnclosures: (List that which you are enclosing)Originally Submitted at http: //www. ftc. gov/++++++++++++++++++++++++++++++++++++Tip #3 -- Budget Planning You can additionally use your credit report that will help you plan and implement an individual budget. Your credit history will show you where you stand spending your difficult earned dollars. While the charge card balances might not be completely current, you'll still see which of the cards has the greatest balance outstanding. If you have several major credit card you need to compare the apr (APR) you tend to be paying on every account. If you're working on the budget to "pay down" your charge cards, start by reducing the one using the highest APR or even interest. Once that credit score account is repaid, move toward having to pay off the account using the second highest ANNUAL PERCENTAGE RATES. Using this method it is possible to concentrate your time and efforts toward paying lower your outstanding credit score obligations. You should also seek advice from your credit card issuer to see what is the best apr (APR) they will offer you. If you're a good client, you can often be eligible for a a lower rate than that which you are currently on offer. Caution: Ask when the new rate you're getting is the "promotional" rate or perhaps a "contract" rate. A promotional price will expire at the conclusion of the marketing term, for example six months. A contract rate doesn't have an "expiration" if you continue to satisfy the terms outlined because of your creditor for which rate. Tip #4 - Creating a major purchase If you are thinking about a major purchase like a car or the home, checking your credit history gives you the opportunity to see what the potential lender views and uses to evaluate your credit merit. You want to make certain that your credit statement is accurate before you make an application for that sports vehicle or new house. Errors or problems could be corrected before your lender may use those against a person and deny your own credit request. You will also have a better concept of what type or even rate of credit you need to expect from the potential lender. Tip #5 -- Check your credit history regularly Check your credit history regularly. Guard your "consumer identity" while you would anything otherwise you treasure. Make use of your credit sensibly, along with these pointers, and you will love the benefits that the good credit as well as your good name should have now - and for a long time. ? 2004, www. yourfreecreditreportnow. com Writer: James H. Dimmitt. Wayne is editor associated with "TO YOUR CREDIT", the weekly free e-newsletter. Subscribe to the newsletter by going to http: //www. yourfreecreditreportnow. com. View this post on my blog: http://cardcompare.valuegov.com/how-healthy-is-your-credit/