Track Your Credit Score For Changes And For Errors

Online, November 8, 2011 (Newswire.com) - Good credit can open many doors for you - things like a new home or vehicle, or financing for home improvements, a much-needed vacation or even debt consolidation. Watching your credit score, however, takes diligence, because you have to maintain contact with all three credit reporting bureaus.

But you can monitor your credit scores in two ways. First, you can keep regular contact with the bureaus, as previously mentioned, or you can use one of these tips.

You can contact the three credit reporting bureaus on a regular basis to check on your credit history, and use their findings to figure out your credit score. You should also carefully review your credit report, searching for discrepancies and inaccuracies. If you find anything that is incorrect, you should contact the reporting agency immediately to deal with the issue and have the item removed from the report.

Next, you should make a list of anything on your credit report that might be hurting your credit. This could include such things as too many accounts open, a low debt-to-open-credit ratio, delinquencies or too few accounts. Concentrate on the things that will affect your credit the most, like too much debt and delinquencies, and work on improving those areas.

You will also want to learn to understand the basics of credit so that you can establish and maintain good credit. Credit history remains on a credit report for about seven years, and a bankruptcy stays put for up to 10 years. Make sure you know and understand your credit report, and what it means to your credit score.

You can also monitor your credit quarterly, by using a three-in-one credit monitoring subscription service offered by the credit reporting bureaus. This will allow you to obtain your credit score up to four times a year. There's also a credit monitoring service that will notify you if there are any changes in your credit reports. These services aren't free, however. There is a monthly charge, and it varies from one bureau to the other.

It's a good idea to watch your credit scores as you monitor your credit reports so that you can see the direct affect your positive actions will have. Overall, it's good basic advice to get a copy of your credit report at least once a year, and make sure you pay your bills on time, every time, while making sure you don't open more accounts than you need. Do these things, and you'll see marked improvement on your credit score over time.