Real Estate
Bad and good credit
By Press Release
Apr 8, 2011

Every day consumers conduct scores of financial transactions that require educated decision-making.

Making the wrong decision about your finances can ruin a good credit report.

Keeping a good credit record is very important; a poor history can follow you for seven years (ten years if you file bankruptcy) and can make buying a home, car or even getting a credit card almost impossible.

The Better Business Bureau offers the following commonsense tips on how to keep a good credit report:

Use credit carefully. Pay close attention to your ability to repay your debts before using a credit card or taking out a loan.

If you are having problems paying your bills, contact your creditors at once and explain the situation. See if they will help you work out a manageable payment plan. Once arranged, follow it carefully. Do NOT wait until your account has been turned over to a collection agency!

If you have been turned down or feel an error exists on your credit report, contact the appropriate company in writing and send your appeal by mail “return receipt requested.” Include your name, address, account number, dollar amount in question and the reason you believe the actions taken were wrong.

If in doubt, request written verification of the debt. Ask for a photocopy of the paperwork including the signature (s).

Keep all of your original documents, especially receipts, sales slips and billing statements. You will need them if you dispute a credit bill or report. If requested by the credit agency, send copies only; never send your originals. It may take more than one letter to correct problems, so keep copies of all your letters as well.

Be skeptical of companies that promise they can immediately solve your credit problems or “clean up your credit report.” There is nothing they can do for you – for a fee – that you cannot do for yourself at little or no cost.

Be persistent. If your credit file contains errors, you are entitled to have it investigated by the credit bureau. The credit-reporting agency must give you a written report of the investigation, and a copy of your report if the investigation results in any change. Inaccurate information must be corrected or deleted. Cleaning up errors on your credit report can take time and effort.

If you have been denied credit, the company must advise you of the name of the credit-reporting agency from which they obtained their information. Under the Fair Credit Reporting Act, you are entitled to a free report. Ask for it in writing.