Are You Afraid to Check Your Credit Score?
Most Americans are living in denial of a potentially low credit score. What you don't know doesn't stress you, right? WalletHub.com found the following:
*Roughly 36 million American adults – a sum that exceeds the combined population of the 20 largest U.S. cities – do not check their credit reports as often as they believe they should because they are afraid to see the exact contents, a*
*from the free-credit-score website WalletHub found.*
Why is this necessarily a problem? Typically when you need your credit score for something it is right away. There is not a lot of warning. If your credit score is low without hope, then there is not a lot you can do. However, for the vast amount of people that is not the case. Credit scores can be improved. The problem is that it takes time. So, check your score and take the necessary actions because it pays to be ready. A better credit score can make the difference in whether or not you get a loan, a lower interest rate, a job, etc. The secret is that it is very easy to audit your credit score.
Take each item on your credit report and categorize them under the following three categories:
- Items that are correct - This can be tricky. You have items that you know are correct. Then you have negative items that are correct. You just don't want to acknowledge it. Make a note of the negative items and determine when they can be removed. Then, mark your calendar for that date in the future. Generally speaking, negative items can be removed 7 1/2 years past the event that made them go negative which is typically the first missed payment.
- Items that need to be corrected - These are items that are your items. Yet, you can have wrong dates, balances, addresses, etc, Make sure your credit report is an accurate reflection on who you are by making sure all of the information is correct.
- Items that don't belong to you - The FTC says that more than 1 in 5 have a critical error on their report. Much of the time those are someone else's mistakes that happened to land on your report. Dispute them and do away with them once and for all.
You see that is not rocket science. You don't need a credit clean up place to "fix" something that you can do yourself.
Now, the real reason you shouldn't ignore your credit report. With rampant ID theft, you just don't have that luxury. Checking your credit report should be a regular routine process. For a detailed guide on how to get out of Debt and increase your credit score, go check out Bob's book Deceptive Money at www.deceptivemoney.com.