When it comes to guarding your credit, one of the most common ways is to check up on your credit reports. If you already didn’t know it, you are entitled to receive a copy of your credit report for free once a year. Once you’ve received your report you need to scan through it and see if there are any items which are inaccurate. If you do find inaccurate items then you have to dispute these items so that they can be removed. The credit agency is accountable for verifying anything that is reported and they have basically a 30-day period to verify anything that you dispute. If they can’t verify it within this amount of time they have to eliminate it from your credit report and this will help to improve your credit score. It’s also possible to ask the agency to send out corrected variations to anyone who has obtained a copy of your file in the 6 months leading up to the dispute. Keeping on top of your score is among the simplest ways that you could improve your likelihood of getting a loan. If possible, request your credit reports well before you apply for a loan to give you time to correct any inaccurate information. Remember when applying for a loan the very first thing they’ll look at is your credit rating, so making sure that you have a high one can be the most crucial thing for you.
Why it’s Important to Keep a Good Credit Score
As children and young adults, our educational institutions gave you report cards and GPAs to measure how well you were managing your academics in school. Once you graduate and you’re no longer being measured by your academics, your credit score is your report card in life! This now becomes the score you’re judged by regardless of your profession.
Even if you’re not planning on taking out any loans or borrowing money in any way, taking the steps to improve your credit score are great exercises in good money habits and good money management. A good credit score isn’t just about borrowing money. In order to have a good credit score you need to have good money habits and that’s the bottom line.
“If you don’t take good care of your credit, then your credit won’t take good care of you.” ― Tyler Gregory
Keeping your loan balances paid off, making payments on time and reviewing your credit history on a regular basis for errors or signs of id theft are the best ways to ensure that you’ll have a high credit rating. Think of those things like they’re your homework assignments to help keep your grade point average up. Really, they’re just simple exercises in good money management that will go a long way for your financial future.
If those are things you’re not used to doing, then you need to make it a priority to work on developing those habits. Like anything else, the more you do it, the easier it gets and the more motivated you’ll become as you start seeing results. Be consistent, be disciplined, be diligent and as you keep your financial house in order, watch your credit score improve!
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