Bad Credit Can't Stop You From Going To College, For Free.

If you are here then obviously you have wondered why the phrase "credit" has been used so much. What we're going to do next is to go over some of these credit basic to work in getting you more comfortable with it.

To put it simply, you credit is a trace of your actions. Maintaining good credit is achieved simply by keeping your bills paid on time. It might seem that simple, but it really isn't.

The rationality that credit is important is if you are looking for a credit card, low interest loan, or getting a low interest rate for any of these, your credit rating will prescribe if you do get approved and what you're interest rate level will be set at. Credit problems can keep you from getting any kind of loan with a decent interest rate.

The other thing you'll hear about is your credit score. This is the number that is assigned to your credit history. They look at your spending habits and how well you've made your payments on time. Your credit score ranges from 300 to 850 where most are looking for a score of 660 and higher.

Just so you have an idea, here are some factors that determine your credit score:

1. How have you used your credit? If you have more than one credit card and they are maxed out or close to the max, you are more of a risk.

2. What is the length of your credit history? If you're 18, you will pose a greater risk than a person that is 40 years old.

3. How many times you have applied for credit? Every time you apply, it gets recorded. Apply often and it will greatly impact your credit.

4. The different types of credit you have. There are different types of risks than others.

Now you have a few basics, you should be wondering what is next. To get started, you will need an actual copy of your credit record. The three credit reporting agencies are TransUnion, Experian, and Equifax. The Fair Credit Reporting Act (FCRA) requires each of these institutions to provide you with a free copy every 12 months by request.

This is your first step. Contact each of these companies and have your credit report sent to you so you can see where you stand.

What to do to dispute your credit report

By mail is the best recommendation by the FTC to dispute something on your credit report. They are going to want to see validation of your dispute so be sure and gather all of these things up. If a late payment is reported that you know isn't correct, attach a copy of something like a online receipt or statement that shows differently. When you do this, there is no way you can be denied. Many people insist that the reporting agencies believe them but it never really works out for them that way.

You should also send your dispute by certified mail and request a return receipt. The credit agency is upheld to investigate your dispute within 30 days unless they deem it without merit. When the investigation is over, the agency has to report back to you the results in writing and if there will be a change or modification to your credit report.

If you get changes made in your favor, there are a couple of options to you that I highly recommend you take advantage of. If anybody requested a copy of your credit report within the last six months, they will report to them any corrections made. If a copy was requested based on your employment, you can request that the corrections be sent to them as well up to two years before.

Repairing your credit report is certainly not a fun task. It's aggravating, tedious, and you need to keep good records. But, in the end, the time and effort are more than worth it by making things so much easier for you.

By: Jim Flannigan

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