Your credit score
The first step in managing your credit score is to know where you stand. Everyone is entitled to 3 free credit reports per year.
annualcreditreport.com is the ONLY authorized online source for you to get a free credit report under federal law. You can get a free report from each of the three national credit reporting companies every 12 months. Some other sites claim to offer "free" credit reports, but may charge you for another product if you accept a "free" report.
Figure out the facts
Take a good look at the date on your report. Credit reports are rarely as spotless as you think. One late payment to Sears can stay on your report for up to seven years.
Look for mistakes. It is estimated that 80% of credit reports contain at least one error. After you identify any discrepancies, you need to eliminate them. A dispute form is available online, or usually accompanies your report if you obtain it through the mail.
Clean up! Identify any debts that are still pending and set up a plan to eliminate them. Clearing up debt can take time, which makes it even more important to start right away!
Add remarks! You have a right to add remarks to your credit report. Take this opportunity to explain or draw attention to a loan that was paid in full with no late payments!
Make fixed payments, even if it's the minimum payment. This proves that you are responsible enough to repay loans as promised. Over time they will outweigh the negative points on your credit report.
Check your report every 90 days or so. This will cut down on ugly surprises when you decided to purchase a new home or auto.
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