Helpful information to print and use (PDF format)• Create a budget
You can get a free annual credit report online by visiting www.annualcreditreport.com; a central Web site that allows you to request a free credit report every 12 months from each of the nationwide consumer credit reporting agencies (CRAs): Equifax, Experian, and TransUnion.
To order a credit report by phone call toll-free: 1.877.322.8228.
If you find an error on your credit report, the CRA should be notified immediately. The CRA will re-verify the item in question with the creditor at no cost to the consumer. The law requires that reinvestigations be responded to by a creditor within 30 days and once the reinvestigation is complete, the credit reporting agency notifies the consumer of the outcome. If information in the report has been changed or deleted, the consumer is also sent a copy of their revised report.
Your credit score is a number based on the information in your credit file that shows how likely you are to pay a loan back on time – the higher your score, the less risk you represent. The credit score that lenders use is called a FICO® score. Your FICO score helps a lender determine whether you qualify for a loan and what interest rate you’ll pay. FICO scores are calculated from credit data in your credit report that can be grouped into five categories: Payment History, Amounts Owed, Length of Credit History, New Credit and Types of Credit Used. Lenders also look at your income, employment history and credit history.
Raising your score takes time and there is no quick fix.
Here are some tips to improve your credit history:
This figure measures the percentage of gross monthly income that is used to pay monthly expenses. Lenders generally like to see this percentage at 35% or lower.
35% or less is a healthy debt to carry for most people, 37%-42% is not bad, but you should start paying off debt to avoid trouble, 43%-49% means financial difficulties may be imminent unless immediate action is taken, 50% or more shows you probably need to seek professional help to aggressively reduce debt.
You can register free with the National Do Not Call Registry online at www.donotcall.gov or calling toll-free 1-888-382-1222 from the number you wish to register.
Building or re-building a credit report is not a quick-fix situation. Make sure your credit report is as clean as possible. You should open a checking and savings account if you don’t have one and do not overdraw your bank account. Apply for a secured credit or two and/or seek out easy credit – many stores extend credit to those without much credit history. Keep minimum activity on the account(s) and pay the minimum on time every month to establish a payment history. If you cannot get credit in your own name, try getting a co-signer to get the account and make your payments regularly and on time. Increase chances of getting a loan by applying a large down payment. It takes at least a year of positive credit habits to develop a good credit history.
PO Box 900
Radcliff, KY 40159
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Routing #: 283978425