Smart Choices Today. Financial Freedom Tomorrow.
College is preparing you for your future success. In many ways, so does a credit card or line of credit. Your good credit rating will be a key factor in achieving many of life’s biggest milestones—like buying a home, purchasing a car, securing a business loan, and even getting hired in certain professions. Use your credit card responsibly, and make your payments on time, to make these things happen tomorrow.
Make smart choices today for financial freedom tomorrow.
Here are some important tips for staying "credit smart." Remember, maintaining a good credit history can help you achieve your financial goals in the future.
- Pay bills on time. Always pay your debts on time. If you move, be sure to provide all of your creditors with your new address.
- Stay within your limits. Set a reasonable spending limit and stick to it.
- Be honest. If you’re having trouble paying your bills on time, contact your creditors immediately to work out an affordable payment plan.
- Keep things consistent. When applying for credit, always use the same name.
- Check credit reports. Experts suggest you check your credit report at least once a year. You are entitled to receive one free credit report every 12 months from each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion. This free credit report can be requested through AnnualCreditReport.com. AnnualCreditReport.com is the official site to help consumers obtain their free credit report.
What is a credit history and why is it important?
A credit history is a report kept on file at a national credit bureau that contains information on how much credit consumers have, and how each consumer who has credit has handled it over time.
What will I find in my credit history?
Three things: personal, financial, and public information. Typically, the information stays active in your file for a period of seven years, or even longer in cases of bankruptcy.
- Personal information—your name, Social Security number, birth date, employers, plus your current and previous address.
- Financial information—your history of payments on credit cards and loans; what you owe and what you have available on your credit cards and other lines of credit; who has inquired about your credit history; and who has given you credit.
- Public information—reports of bankruptcy, foreclosures or tax liens.
Who uses my credit history?
Lenders look at your credit history when you apply for a loan, a home mortgage, a checking account, or a credit card. If you rent, your landlord may look at your credit history to see if you pay on time. Even your employer may look at your credit history as a reflection of character and use it when making decisions regarding hiring and promotions.
Who collects the information in my credit report? How can I get a copy?
There are three national credit bureaus that track your credit history. It is important that you check to make sure that what they are reporting about you is accurate. Federal law mandates that national credit bureaus must give you a copy of your report if you request it. You may, however, need to supply identification. To receive a copy of your credit report contact:
Equifax Information Service Center
Attn: Consumer Department
P.O. Box 105873
Atlanta, GA 30348
(800) 685-1111
www.equifax.com
Experian
701 Experian Parkway
P.O. Box 949
Allen, TX 75013
(888) 397-3742
www.experian.com
TransUnion Corporation
National Consumer Disclosure Center
P.O. Box 390
Springfield, PA 19064
(800) 888-4213
www.transunion.com
When should I check my credit?
It is advisable to review your credit report every year, or at least six months before making a major purchase or looking for a job requiring a security or background check. Any time you have a question about your credit history, you should request a copy of your credit report.
How much does it cost to review my report?
In accordance with federal law, you may obtain one free copy of your credit report per year. Additional copies typically cost less than $10. However, if you’ve recently been denied credit as a result of your report, all three major bureaus will give you a copy for free.
What if there’s an error in my credit report?
To protect your access to future credit, and to save time, money and your credit rating, you should make every effort to correct any mistakes and misunderstandings reflected on your credit report. If you discover an error, write to the credit bureau within 30 days to tell them about it. It is a legal requirement that the credit bureau must correct any incomplete or inaccurate information at no charge to you. If the bureau refuses to change the information, and you believe them to be wrong, send the bureau a written explanation of why you think their report is inaccurate. Your letter will become a part of your credit report for future reference.
Can a "credit repair" company help me remove negative information?
No. Correctly reported late payments, foreclosures, bankruptcies, etc., stay on your credit report until the law requires they be removed. In reality, firms claiming to be "credit repair" experts can do no more than you. The best way to repair your credit history is to consistently pay your debts on time.