How do I read my credit report, is a question that surfaces more
than “How do I save when all I do is spend?” My personal examination, is
understanding that a result of the lack of saving money does not have the capability
of telling you, “no” in the same manner as a not so posh credit score does. “No
to yet another credit card, No to a car loan, No to a personal loan, and No to
the job that you’ve always wanted.” While reading a credit report can appear to
be overwhelming it is actually a simple exercise.
The key to understanding the ins and outs of your report is to reflect on the “Did I’s” i.e.:
The key to understanding the ins and outs of your report is to reflect on the “Did I’s” i.e.:
Did I apply for credit?
Did I open a new account?
Did I move?
Did my last name change?
Did I make all of my payments on or before the due date?
Did I allow any of my debts to go beyond 30 days past due?
Great anxiety goes into undertaking debt, with a great
percentage of those emotions being a result of not knowing what’s on your
credit report? Vanished medical bills, charged off credit cards, liens and
levies that are a thing of the past (or so we think). We’re often afraid that
if we scrape the surface, unexpected little creatures will begin to jump in our
laps. The time is now to release any fear, and face what has kept you in
bondage for years and for some decades. Let’s take a walk in the land of credit
reports:
§ Review the most familiar items first, this
would be your personal data. Is your name spelled correctly throughout the
report? Are your current and previous addresses correct? Current employer and
past employers in tact? Lastly, but most important is your social security
number correct?
§ Next, let’s move to your accounts.
Review each item, to confirm that each are correct beginning with the creditor,
original amount, balance, account numbers, and your 30, 60, 90 day analysis,
are all aligned with your contractual agreements.
§ As you navigate beyond your accounts,
next in line would be your inquiries. Reflect back on any request to obtain new
credit accounts, an increase in the balance of current accounts, or a
background check that requires a review of your consumer credit report. Make
certain that each listing is correct
§ If after reviewing your report, you
notice inaccuracies or any uncertainties, devote time to contacting your
creditors or the credit bureau to resolve these matters. Depending on the
complexity of your information, it could take all 3 credit bureaus 30 days or
longer to provide a letter of explanation.
§ The worse and most unproductive thing you can
do to protect your credit is to not review your information at least twice a
year, (every 6 months). Change comes by doing and facing that which keeps us in
bondage.
For those of you, that are not already aware,
www.annualcreditreport.com offers a free credit report minus your actual score.
Use this site to your advantage to obtain information about identity theft,
protecting your credit score, frequently asked questions, and more.
What steps have you taken to safeguard your financial future?
A corporate trainer by trade and a devout finance coach 24-7,
Marsha has over 11 years of finance experience, she is the founder of Financial
Empowerment, a non-profit organization based in Charlotte, North Carolina.
Marsha is dedicated to providing financial education and
coaching to women, young adults, and children. Financial Empowerment offers
educational programs, seminars, and sessions covering various personal finance
topics to include: Saving, Budgeting, Debt Management, Credit Control, and
Small Business-Consulting.
Committed to Financial Empowerment and its mission, Marsha
has taken a holistic approach in her community and beyond by making appearances
on WCCB-Fox News Rising, Fox News Carolinas Channel 4, and as a contributor to
Single and Living Fab, Founding Editor Jacque Reid, and on Steel Leather Lace
Elephant created by pRoy.
Marsha holds both her undergraduate and graduate degrees in
Management and Leadership, she is a Certified Financial Education Instructor,
and a member of Delta Sigma Theta Sorority Inc. In her free time, Marsha enjoys spending time
with those dearest to her heart (her husband and son).
Website: www.financialliteracy-coach.
