how to fix my credit score in 6 months

Protecting Your Credit Score

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A credit score is supposed to represent your creditworthiness. It's used as a way of measuring your ability to repay a loan in full so it needs to be accurate or you will miss out on the interest rates that should apply to someone who's good with money and always pays what they owe. You can't rely on credit agencies like Equifax to have the correct information about you. You really should check out your credit report yourself and make sure it's accurate. Looking at your credit report will also give you some ideas on how to improve your rating.

Free Annual Credit Reports

Did you know that you're entitled to a free credit report from each of the three biggest credit agencies in America? If not, you've learned the first and most important thing about your credit score – that the information is out there and you can influence what's put on paper about you by reading your report and querying any mistakes. Every 12 months you're allowed to get a free copy of the report from Experian, TransUnion, and Equifax so you really should take advantage of that if you're trying to build up a good credit rating.

How Do You Get Your Credit Report?

A website - www.annualcreditreport.com – has been set up to allow citizens to access their report easily. The site is very easy to use and has hints and tips on what to look for on your report and how to protect your identity. When you get the report, check that the following information is correct: your names, addresses, your Social Security Number and any accounts or loans you currently have. If there are any errors, report the credit reporting company or the firm you're borrowing from.

Identity Protection

If someone runs up debt using your personal information it will impact your credit score negatively. Identity theft is a major issue if you don't catch it quickly but as with most things, preventing the theft taking place is better than curing the problem afterwards. Always shred your important paperwork so that your account details and Social Security Numbers aren't accessible by thieves going through your trash. Making sure that you delete or reformat your old electronic devices is another way of keeping this information safe from prying eyes.

Identity Theft Signs

If a bill you're not expecting comes through the mail or a notice that you've been denied credit that you didn't apply for lands on your doormat, then someone is taking out credit in your name. Incorrect information on your credit report is another sign that things are not right so check it thoroughly. It might be something you've taken out and forgotten about or it might be a result of identity theft. Don't worry about upsetting the credit agencies by questioning anything that doesn't make sense to you. That's something they're used to.

Security Freeze

If you believe that someone's taking out credit in your name, ask the credit agencies to apply a security freeze, which is also known as a credit freeze. This locks your credit report from the eyes of lenders so it's a good idea to place a credit freeze when you realize that you've become a victim of identity theft. Placing a security freeze is free in some states, while others apply a fee. You can check your local area's rates on the websites of the three major credit bureaus.

Keeping a Good Credit Score

Maintaining a good FICO score is an important part of life now. If you want credit for the smallest of things like a cell phone or the biggest purchase like a new home, you'll need a good credit rating. Don't let yourself down by allowing a credit bureau to misrepresent you to lenders. Paying your loans on time, paying more than the minimum each month on your credit cards and never going overdrawn on your bank account are some basic ways you can make sure you're always creditworthy.