Five Steps to Boost Your Credit

Everyone knows that even the smallest ding on your credit report counts against you. Fortunately, there are tried and true ways to get on the path towards financial solvency.

1.           Get your credit report: Take advantage of your legal right to obtain a free credit report from each of the three major bureaus each year. Don’t be suckered by advertisements of “free credit reports” anywhere except annualcreditreport.com, the only official web site by the Federal Trade Commission. The rest are essentially scams.

2.            Go over reports carefully: It’s a fact of life that almost all consumers have at least one error on their credit report. It’s your job to review and polish your credit report, so take it seriously! Look for anything from typos to missing and/or incomplete information.

3.           Document and dispute: You can dispute inaccuracies on your credit report either by using the dispute form that should be attached, or writing a letter to the bureau in question. Careful documentation of errors and clear proof of the inconsistency is essential. Experts recommend making a copy of the report, and circling errors.

4.           Dissolve debt: Now that you are fully informed as to what needs work on your credit report, get down to business! Find a debt resolution plan that works for you, whether by yourself, or with the help of a professional.

5.           Get stable: Establish good credit now, even if you have an extended length of time before bad marks fall off your credit score. Look into a secured credit card, but do your research beforehand – too many inquiries into your credit from applications look bad on your report. And consider opening a savings account at your bank – this shows debtors that you are serious about saving money and putting yourself back on track financially.  ■