THE MVET WAY CEMN NEWSLETTER_NOV_DEC_JAN_2016 – 2017_ISSUE_V

Boost Your Credit Score in 2016 By Craig Buchan, M.A. Part 2 of 3

The first article described 2 of the 5 tips that will help to increase your credit score. In this article, I will share tips 3 and 4 as we continue the quest for improving and maintaining a good credit score. Tip #3: Review your credit report from all three agencies, and dispute incorrect information. You are entitled to a free copy of your credit report from all three credit reporting agencies ( Experian , Equifax , and TransUnion) every year. You can download these reports for free from AnnualCreditReport.com . If you see any incorrect information, it is your responsibility to dispute the information. Fortunately, making a dispute is getting easier. You can register your disputes online (explained here ). And if your situation has not been resolved to your liking, you can complain to the Consumer Financial Protection Bureau online, here . The CFPB would reach out to the credit reporting agencies on your behalf. Tip #4: Don’t borrow money to build your score. One of the worst credit score rumors that never dies is the need to borrow money to build a credit score. You never need to pay interest to have a good score. You only need one transaction (that you pay in full) each month to do well. For example, you could buy one gallon of milk each month on your credit card. If you paid that statement balance in full and on time every month (never paying a dime of interest), you could have an excellent credit score. Why? Because your utilization would be low (only a gallon of milk) and your payments would be on time. That is all it takes. Base on tips 3 and 4, what steps will you take to improve/build your credit score? Part 3 will continue with the final credit score boosting tip #5.