In today's electronic world,
having a credit card is no longer a fad or a
convenience for the rich, but has become a necessity. However, it is not how many
credit cards you have, or even the amount of your credit card limit, but the
quality of your credit repayment history that is most important.
Did you know you are entitled to a free credit report?
The Federal Trade Commission's Fair Credit Reporting Act requires Equifax, Experian
and TransUnion to provide you with a free copy of your credit report at your request.
These three nationwide consumer reporting companies have set up a central website
through which you can order your report. You may order one free copy from each of
these reporting agencies every 12 months.
The only authorized website to fill orders for the free annual credit report you
are entitled to under law is: annualcreditreport.com. Don't hesitate to take
advantage of this truly free offer.
You may also request your credit score along with your credit report. The credit
score (FICO score) is calculated using your credit report data and is what determines your
credit worthiness. This is depicted as a number from 300 to 850. The average US
national credit score is between 580 and 650. A good credit score is somewhere
upwards of 700. The higher your score, the better you will qualify for low interest
loans and credit cards.
If your credit is less than perfect, you may have a hard time securing a loan to
purchase a car or home, but you may still be eligible for a credit card with
certain providers. However, you will most likely be charged a higher than average
interest rate. It is most advisable for you to take immediate steps to improve or
repair your credit rating. There are a number of reputable organizations who can
help you with that.
There are certain things you can do on your own to fix your credit. Begin by paying off as much of
your credit card debt as you are able to. Always pay bills on time or before they
become due. Don't get behind in your mortgage payments - this is most important
because lenders will report late payments and that will affect your credit rating.
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