A credit report is only a snapshot of credit performance at any given time. That's why it is extremely important to be proactive in monitoring your credit. This may help you improve and/or maintain your good credit standing. Believe it or not, this may come as a shock to you, but the credit report is an integral part of managing your overall credit standing. If you would like to improve or maintain your credit rating, here are a few positive steps you can take....
1. make all the effort you can to resolve any past due account
Resolving past due accounts does not necessarily mean you have to pay off balances. It is simply a matter of of contacting the creditor and working out a manageable payment plan. As you make these payments, your credit rating can improve as the credit reflects a good payment history of your new plan.
2. reduce the number of accounts with open credit
Trying to manage a multiple accounts can become quite cumbersome. To keep your records easier to manage, close down a few accounts. This may help with making payments on time in the future.
3. not so common, but a lack of credit history may be a factor
Creditors gauge a borrower's credit worthiness through a history of payments made. If you've not taken out any loans or credit accounts, this can affect a creditor's willingness to take a chance on your limited history. You may need to start with some small credit accounts to establish a history of good payment history. Perhaps this is a secured loan or credit card through the bank or a small installment loan.
4. taking action on any items is crucial, but don't expect to reestablish good credit overnight
Most types of adverse credit will remain on the credit profile for up to 7 years and in some cases as long as 10 years. Remember, the credit problem may have happened suddenly, but creditors are looking for patterns of responsible credit use over time in making their decision to extend credit.
With Identity Theft increasing year after year, monitoring your credit has never been more important than it is today. In fact Identity Theft is the fastest growing crime in America. Most companies will charge a nominal monthly fee to monitor your credit. They will send you a copy of your file quarterly or monthly as well as notify you any time a change occurs in your credit profile. If fraud does occur, most monitoring services provide you with a kit to help settle any problems that may arise. They will also have a counselor you can call to talk with for guidance. Some services actually provide all of the cleanup for your rather than giving out a kit. You sign an affidavit and power of attorney, and they handle the rest for you.
Having personally experienced identity theft twice, I recommend the 2nd choice. One place you can visit for this is Identity Theft Shield. They are owned by Kroll Background services. Many times a home owners policy also has a provision to protect for Identity theft. However, be aware that any claims can cause your home owners policy premium to increase. They also provide kits to guide in self-help with the clean up.
Credit is a serious matter and could mean savings of thousands of dollars if monitored closely and carefully. For any questions, please feel free to call me at 505-250-1944 or send me an email at jchristensen2901@gmail.com.
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