In case you didnâ€™t know, the only way to be 100% sure that your credit score is healthy and accurate, is to check your credit report. Your credit report is considered your identity to potential lenders, employers, and anyone looking to invest in you. Here are some great tips to fine tune your credit and boost your likeliness to get a loan.
1) Correct Errors
Once you take the plunge to check your credit report, you may be surprised to find that there are quite a few errors. Relax; this is common for people who donâ€™t stay on top of their financial history. Anyway, correcting the errors will take some time contacting various bureaus and companies, but the time is well spent. With a clean slate, you can start over rebuilding and maintaining your credit.
2) Budget Yourself
Keeping track of all incoming and outgoing money is the key to healthy credit. Set limitations for yourself, especially when you find you have extra cash in your savings account. Good credit is all about responsibility. If you can set monetary goals and stick to them, it will show lenders that you are worth a risk.
3) Check Your Credit Report
Annually, before making a major purchase, and after making a major purchase. How are you ever supposed to know what â€œtheyâ€ (the lenders) are looking at if youâ€™ve never seen it? As an added bonus, you can make sure you havenâ€™t become a victim of identity theft like 20,000 or so Americans who do everyday.
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.