June 2011 Newsletter - How to Build, Maintain, and Repair your Credit

 

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Protecting Your Data                                                        Staycation

• Open a checking or savings account. Having a financial history will help you secure a loan.
• Pay your bills on time; take advantage of auto-pay to avoid late-fees.
• Keep balances as low as possible on "revolving credit" (i.e., credit cards).
• When possible, pay off debt instead of transferring it to low interest rate cards.
• Don't open lines of credit you don't need.
• Don't close credit cards you've held for a long period of time. The length of your credit history plays a factor in the credit score you receive.
• Protecting your credit from identity theft is another pro-active way of maintaining good credit; if your identity is stolen and fraudulent charges appear, it will take some time to straighten it all out.

• Guard your mail from theft by shredding it before discarding it - especially mail containing personal information, including charge receipts, credit offers and applications, insurance forms, doctor's statements, discarded bank checks and statements, and expired credit cards.
• Be protective of your personal information.
• Be cautious when giving out your credit card number, address, or other personal information. When possible, only share this information with reputable organizations.
• Never carry your Social Security card. Leave it in a secure place at home or in a safe deposit box if you have one.
• Use secure online purchases (https://) whenever possible, and look for graphic images of a lock and key at the bottom corner of your browser or the words Secure Sockets Layer (SSL).
• Avoid using your card as identification. Thieves can use this information to assume your identity and open bank accounts, make purchases - even get a job or apartment using your identity. Only use your credit card at recognized and reputable merchants.
• If you suspect fraud, contact the bank that issued your card and have them put a "credit freeze" on your account. A credit freeze will flag your account and make it difficult for would-be-thieves to open a new line of credit under your name. 

• If you suspect fraud, the first thing to do is place a Fraud Alert on your credit file. This alert will stay in place for 90 days and will require creditors to verify your identity before issuing credit in your name.
• If you have already been a victim of fraud, fill out an Identity Complaint Form with the FTC and have them place an extended fraud alert on your credit file which requires all creditors to actually speak with you before issuing credit. The extended fraud alert stays on your file for 7 years.

• Get current on all your accounts. If you are behind, creditors will send your accounts to collectors and this will negatively impact your credit file.
• Pay your bills on time. The length of time you've paid your bills timely impacts your credit score.
• If you fall behind on payments, contact the creditors or see a credit counselor and let them know your situation. This will give you a chance to work something out with the creditors - possibly delaying reports of delinquencies to the credit agencies. 
• Get your credit report a few times a year to monitor your progress. Although it takes time to raise those scores, watching them rise should serve as motivation to reinforce these new habits.