Part 1: First Things First – Your Credit Report

Part 1: First Things First – Your Credit Report 

The very first thing you need to do when trying to raise your credit score is to find out what your FICO score is and what it means. Legislation called the FACT ACT was passed that allows all Americans to get one free copy of their credit report every year. This report lists all of the debts you have had and your payment history on those debts.

It will tell you where you owe money, how much you owe, and how you pay (on time, 30 days late, etc.). All of that information is compiled together and then analyzed. 

After the analysis, a number is assigned to you as to what your credit fitness level is. Potential creditors then look at your credit score and decide if you are requesting to borrow.

That’s the short version. Actually, there is much, much more involved in determining your credit score. However, what should be important to you is knowing how to read your credit report and how to raise that score so that you are able to get the things you need. Remember that – the things you NEED, not the things you WANT!

Let’s start with how to get your credit report in the first place. There are three major credit reporting agencies that offer you a free credit report you get each year. They are Experian, TransUnion and Equifax.

Why is it important you get a free credit report from all three agencies? Creditors can pick and choose which credit reporting agency they want to report to. Some will report to all three, but many will not. You may find that what is included on one report is not on another. The reports will have different information because it is a voluntary system, and creditors subscribe to whichever agency they want - - if any at all.

RICH CREDIT CLUB