By Rochelle N. Belnap, The Arizona Credit Law Group, PLLC
Happy 2015! This year you can improve your credit and start making a dent in that list of things you want to accomplish. Maybe you want to apply for a promotion, buy a new car, buy a house, or co-sign on a student loan for your children. These days you need pretty good credit to do these things.
The magic number is 640. FICO is the credit scoring model used by many lenders and a 640 is the typical threshold needed to qualify for credit based financing. Now you have something to aim for, but how do you get there? Well, here is your checklist!
First, you need a copy of each of your credit report reports. You are entitled to all three for free annually through www.annualcreditreport.com, or you can buy a three in one report from many vendors online.
Second, check to see if you have active and open accounts like credit cards, car loans, mortgages, etc. If you don’t have open credit, then your first step is to apply for a secured credit card. This is hands down the fastest way to improve your credit.
Third, make a list of your debts. Are they credit cards? What is the credit limit, what do you owe? Are they collection accounts? How old are they, what are they for, do you owe the debt, have you been sued?
Last, make a list of everything that could be an error. Like late payments, duplicate accounts, accounts that have been closed for longer than 10 years, accounts that don’t belong to you, accounts you discharged through bankruptcy, and accounts you paid but show you still owe a balance.
Once you have done this you have a task list! These are things you need to address in 2015 to improve your credit. Pay down your credit card debt, address your collections, and dispute the errors on your credit report.
We know this can be overwhelming, so we have created a credit report analyzer tool where we review your credit reports for you and give you a detailed report telling you exactly what needs to be done and prioritize items for you. We will even give you recommendations for additional tools to help you reach your goal! Check it out at http://overt-toys.flywheelsites.com/services/
Thanks for reading!