Credit Counseling Tips

What is it to be “creditworthy” – and why is it essential for you? And if your credit history is not quite up to par, what can you do to improve it? Check out these credit counseling tips.

To paraphrase the Oxford Dictionary, the definition of being “creditworthy” is a person or company who is trusted to receive credit because they’ve shown by past behavior that they will pay it back. Sounds straightforward, but it takes work to attain and maintain creditworthiness. Whether you are an individual or a business, you will probably need “good credit” to establish a place to live, get hired for a job, launch a new business – or acquire a loan to support your other personal or professional goals. Where do you begin?

Start by Learning What is in Your Credit History

Your personal credit history is collected, scored, and shared by the three credit reporting agencies, Equifax, Experian, and TransUnion. They receive data from your creditors and update your records accordingly. They reflect your credit behavior, including whether your bills were paid on time, payments were late or sent to collections, if you defaulted on a debt – or if you declared bankruptcy. Your report includes personal information about you, and you may be surprised to learn who has inquired about your credit history.

It’s important to check regularly to see what has been reported. Mistakes happen, and you’ll want to work through the agency’s dispute process to get any errors or outdated information corrected.

Also, it’s important to identify any potential fraud or identity theft. Unfortunately, it happens too often, with approximately 1/3 of all Americans having been a victim of identity theft. If you are concerned that someone may have stolen your identity, you’ll want to follow these steps from IdentityTheft.gov to report it and begin recovering.

You are eligible to receive a free credit report each year, so take advantage of it. You can’t manage your credit if you aren’t monitoring it. Read more >