Your credit report is important to your financial standing. A good credit report is helpful should you need a line of credit, allowing you to get lower interest rates, often with preferential terms. Check your credit report regularly to ensure it is correct. This will allow you to monitor areas that need improvement. Building a better credit report can take time and effort. By following a few procedures, your credit report can improve.
Instructions
- 1
Apply online to get your credit reports. You can get a free report annually from AnnualCreditReport.com (see References) to start building a better credit report. You are entitled to free report from all three credit reporting bureaus: Experian, Equifax and TransUnion. Get all three, as they may contain different information. Complete the online application form and you will be able to access your credit reports at once.
2Check the three reports for errors. This is the quickest way to build a better credit report. Contact the lender and the reporting bureau with any errors immediately. Check the Federal Trade Commission website on how to dispute errors (see References).
3Check areas where your credit history could be improved. Credit cards that have a high outstanding balance affect your credit history. Reduce the balances as quickly as you can. Use the cards you have sensibly, but regularly. Using all your cards and keeping the balances under 50 percent of your credit limit for each card is better than using one card to its limit and not using other cards. This use of your credit cards will help build a better credit report.
4Ensure all payments for your loans and credit cards are made on time. Each payment is recorded and shows on your credit report. Consistent regular payments build a better credit report.
5Pay your utility bills by the due date. Electricity, water and gas companies report payment history to the credit reporting bureaus. If you have a contract cell phone, pay the bill on time. They also report to the bureaus.
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