Monitoring and Repairing Your Credit Reports

Why Your Credit Matters

Everyone needs to borrow money at some time. Your ability to borrow, and do so at a competitive interest rate, depends on your credit history. Your financial transactions are constantly being monitored by credit bureaus who maintain your credit report. Do you pay your bills on time? What are your credit card balances? Answers to these questions are summed up in reports that banks use to decide whether to loan you money or issue you a credit card. Banks need these tools to predict how risky you are as a borrower. For the convenience of banks and lenders, your creditworthiness can be boiled down to a three-digit number! Your financial well-being depends on knowing:

� your credit history
� who maintains your credit history
� how to correct errors on your credit report
� how your actions influence your credit rating

So before applying for a loan, find out what others are saying about you. "They've got your number" and you should too! Take control of your finances and make sure your credit history is accurate and not preventing you from reaching your goals.

Your Credit Report

Your credit report summarizes your creditworthiness by listing your debts and payment history. Three consumer credit bureaus independently maintain your credit history by collecting data from banks and creditors. Each bureau creates its own report, so unfortunately, you need to monitor all three. The bureaus are TransUnion, Experian and Equifax.

Obtain Your Free Credit Reports

Because monitoring your credit is so important, the government passed a law enabling you to access free copies of your credit reports from all three bureaus once every twelve months. Just go to www.annualcreditreport.com and rest assured that the site is secure and confidential. Print copies of your reports and review them for accuracy.

Beware of ads offering free credit reports. There are usually strings attached or hidden fees. Use the government-sponsored website and you'll be assured that it's truly free.

As you review each report, pay attention to the following: