Based on a recent report in The Wall Street Journal, the three major credit reporting agencies – Equifax, Experian, and TransUnion – will be dropping many tax liens and civil judgements from consumers’ credit reports. If this pertains to you, poof, your FICO score could go up by 20 to 40 points. Nice, eh?!
This news is also a great reminder to regularly check your credit reports from the three major bureaus, which you can do for free once per year. If you want to track your credit score, you can purchase it at myfico.com. Millions of Americans have errors on their credit report that could haunt them when they are looking to buy their next home or new car. So, it’s a good idea to be mindful of what your credit report says about you.
If you find an error on your credit report you need to take care of it right away by contacting the creditor and the credit bureau. Make sure to keep detailed notes of phone calls and keep hard copies of all emails and letters you receive about the error. You may be asked to produce this documentation next time you apply for a mortgage or car loan to prove that the debt has been resolved.
I recommend that you check your reports at least once a year but ideally every six months, especially if you anticipate any major life or financial changes where a good credit score would be useful to you. If you are too busy then monitoring your credit is very important and protecting it can give you less to worry about when it comes to your credit. Remember that your credit score is used for more than just opening a line of credit. A potential employer may check your credit, as could a new insurance provider, or landlord. You can learn more about building better credit with me at Jeanne Kelly Academy