How do You Start To Rebuild Your Credit

There are several factors to consider when you decide to Rebuild Your Credit. Making sure credit is readily available to you can be a life saver in good times as well as bad times. It's imperative for you to know what is going on with your credit worthiness and how the credit reporting agencies view and rate you.

If you understand the dynamics of how credit is judged, you'll have the information to help you stay on top of it all.

Credit Reporting Agencies

Most people have no idea about these companies. What do credit reporting agencies, credit bureaus, credit monitoring services do? There are three Bureaus:

• Equifax
• TransUnion
• Experian

We've all heard the commercials on television about how to get your free credit report. Oh yes and unless you live under a rock you should be aware that the information is free. Well yes, but not in every situation.

Each of the above Agencies offer access to your credit report from each bureau for different prices or free depending on the access you request.

Under the FACT Act amendments to the Fair Credit Reporting Act, you are entitled to one free credit report from each of the three main credit reporting companies in a 12-month period. If your identity can be verified online you can access it online, otherwise, you'll have to do it by mail.

What's in Your Credit Report

Each credit reporting agency may format and report information differently, credit reports contain mostly the same kind of information.

• Who You Are
• Name
• Address
• Social Security number
• Date of Birth
• Employment Information
• Accounts
• Creditor
• Type of Account
• Term of Account
• Credit Limit
• Loan Amount
• Account Balance
• Payment History
• Credit Inquiries on your Report
When you are seeking credit, you are asked to authorize your lender so they can view your credit report. These are Voluntary Inquires and they appear on your report. Contained is a list of everyone who has accessed your credit report over two years. The report also lists Involuntary Inquires. These are lenders who order your report so they can accertain if they want to make you a pre-approved credit offer, usually over the phone or in the mail.
• Public Records and Collections
• Bankruptcies
• Foreclosures
• Law Suits
• Wage Attachments
• Liens
• Court Judgments

As you can see, the very first step you must take to Rebuild Your Credit is to get all three reports. You will need to go through them to make sure the information is accurate.

This service is free once every 12 months and it is a good idea to get them annually. If there are any discrepancies in the reporting of your financial picture, this gives you a chance to get it straightened out and resolved.