There are 3 credit reporting agencies that compile your credit information into one easy-to-read report. Not all companies report to all 3 bureaus, and they are not required to report to any of them. However, you will find that many companies will report credit transactions to at least 1 of the 3 companies.

The 3 credit reporting agencies are, Experian, Equifax, and TransUnion. Each company has a different way of making credit reports, but they all generally operate in the same way. You can find them easily on the web at www.experian.com, www.equifax.com, and www.transunion.com.

The FACT Act was passed in 1997 and provided 1 free credit report each year for anyone who requests one. Although it's a good idea to get a copy of all 3 reports, you will only get one for free. You can get the other 2 by paying a small fee - usually in the $15 to $20 range.

To get your free credit report, you visit either www.freecreditreport.com or www.annualcreditreport.com. You will have to enter your personal information, then your credit report will appear directly on your computer. You can print it out and check it for accuracy.

We can't stress enough that you should check over your credit report on a regular basis. Often, mistakes are made. You can take steps to remove the information so that you won't be denied credit solely because an error was made. The credit reporting companies are often eager to work with you to repair mistakes, but you will need to contact them with proof of the inaccuracy before it will be removed.

Since the decision to offer you credit, whether it is for a credit card, a home loan, or a car loan is made solely on the information contained in your credit report, you should strive to keep your credit record clean and free from errors. Your credit score is determined by the information on your credit report, so you want your credit score to be as high as possible in order to get approved for loans. Just don't get into trouble with credit. Your credit report won't appear so good to a potential lender.

The post Credit report appeared first on FamilyToday.

Another way to get a good credit rating score is to have a co-signer on a large loan such as, a car loan. The co-signer is basically guaranteeing that you will pay the loan and if you do, it will reflect very well on your credit report and raise your credit score. You see, what you need to get a good credit rating score is a history of on-time payments and no abuse of credit.

What we mean by that is, you don't want to apply for and get several different credit cards and charge items on all of them. This just shows the credit companies that you are being irresponsible with your credit and have little financial finesse or know-how when it comes to managing money.

To get a good credit rating score, the most important thing to remember is to pay on time. We can't stress this enough. Most companies that extend credit to you will allow you a grace period to make the payment. For example, if your payment is due on the first of the month, they usually tell you late charges will occur if you pay after the 13th. So essentially, you have between the 1st and the 13th to make your payment. While this sounds great, if you wait until the 13th to make your payment, this can reflect poorly on your credit report. So, if your bill is due on the 1st, pay it on the 29th, 30th, or 31st of the previous month, just to be sure.

A great way to be sure you are making on-time payments is to have them deducted directly from your checking account. This alone will contribute toward a good credit rating score because it shows fiscal responsibility. Plus, it ensures that your payments are made on time and you won't miss any payments. Of course, you'll have to be sure there's enough money in your account to cover the payments since credit bureaus also look at your checking accounts.

Getting and maintaining a good credit rating score is actually quite easy when you set your mind to it.

The post How to obtain a good credit rating score appeared first on FamilyToday.

The truth is, people with bad credit can get loans. They may not be able to secure a loan on their own, or get the best rates, but there are options available to them.

CO-SIGNERS

The first way those with poor credit can get a loan is by having a co-signer. A co-signer is a person with a clean credit history who secures the loan with the person with poor credit. In essence, the co-signer takes the responsibility to make sure the person with poor credit makes payments on the loan. If payments aren't made, the co-signer has agreed to pay back the loan, instead.

Because of this, getting a co-signer is tricky business. Many people won't co-sign on a loan because they do not want to be held responsible for someone else's debt. In most cases, a co-signer is a parent or a loved one, and relationships are often damaged if the loan is not paid on time and the co-signer is left to clean up the mess. If you ask someone to co-sign on a loan, you must be certain that you can make your payments, or you may risk more than your credit.

HIGH-INTEREST LOANS

If a co-signer isn't an option, those with poor credit may still be able to secure a loan on their own. Some lending institutions will give loans to those with poor credit, but the interest rate will be much higher than what is offered to those with good credit. Expect to pay as much as 8% to 10% higher interest, which means higher payments or a longer term, or both.

SECURED LOANS

A third option is a secured loan. In this case, the person must use property as collateral against the loan. To get a secured loan, you must own something that can be put up as collateral. The most common type of property is a vehicle that is owned outright. The reason for this collateral is if payments are not made the property can be repossessed. This means you could have your property taken from you as payment if you aren't able to pay back the loan.

With these options, those with poor credit can get loans and rebuild their credit. This puts them on the road toward financial stability with a good credit profile. This is good news for those who are currently wondering if they'll ever be able to get out of credit prison.

The post Loans for people with bad credit appeared first on FamilyToday.

If you find any errors, you'll need to notify the credit bureau by mail enclosing proof that the entry is erroneous. They will then review your request and are required to advise you within 30 days whether or not they are ruling in your favor. You should always send an error notification letter certified mail with return receipt requested so you know for sure that they have received your letter.

If they have ruled in your favor, check your credit report again to be sure the error has been removed. Just a little correction of an error can be a significant step toward the repair of your credit. It alone can make your credit score rise.

After you have thoroughly inspected your credit report, the next step to repairing your credit is to start working on your debt. You need to start paying down any credit card debt that you have accumulated. Keep paying your mortgage or your car loan if you have either or both. Be sure to pay on time and keep up to date without paying past the grace period you are given.

The best thing you can do for yourself when you are trying to repair your credit is to get rid of credit card debt and then don't use credit anymore. Well, at least use it sparingly. If your credit card debt is too much for you to manage on your own, contact a debt consolidation company so you can get a debt consolidation loan that will pay off all of your creditors and allow you to make just one payment instead of several.

There are also credit counseling center that can help you repair your credit. Not only can they help repair your credit, they can help you make a plan so that you never get into credit trouble, again. That includes making a budget you can stick to and providing support if you find yourself in a situation where you might not be able to get out of on your own.

Take steps right now to repair your credit if it is less than perfect. In the long run, you will find that it will be well worth the effort and the time that you put in. Plus, it's satisfying to know you are credit worthy!

The post Repairing your credit appeared first on FamilyToday.