Five steps to improve your credit score

Strong credit affects many aspects of your daily life, including your ability to purchase a home. Looking to improve your credit score?

The Board of Governors of the Federal Reserve System offers five tips for doing so. Here is what they recommend:

1. Get copies of your credit report-then make sure information is correct. Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every twelve months. You can also call 877-322-8228 to request Annual Credit Report.

2. Pay your bills on time. One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you to pay on time, but be sure you have enough money in your account to avoid overdraft fees.

3. Understand how your credit score is determined. Your credit score is usually based on the answers to following questions:
• Do you pay your bills on time?
• What is your outstanding debt?
• How long is your credit history?
• Have you applied for new credit recently?
• How many and what types of credit accounts do you have?

To learn more about credit scoring, see the Federal Trade Commission’s website: Facts for consumers:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm

4. Learn the legal steps to take to improve your credit report. Read the Federal Trade Commission’s “Building a Better Credit Report” http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
It has information on correcting errors in your report, tips on dealing with debt and avoid scams- and more.

5. Beware of credit - repair scams. Sometimes doing it yourself is the best way to repair your credit. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm It explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

Do you have questions?
Call Tatyana Baytler
Phone: 443-527-4375