Don’t sleep on your credit history
Your credit report impacts your finances in many ways, such as your ability to secure an auto loan or mortgage, rent an apartment, obtain a high credit limit, or even sign up for a cell phone plan. Unfortunately, your credit report may contain errors. That’s why it’s vital that you review your credit report to ensure accuracy, and not just once, but on an ongoing basis.
Request your credit report regularly
You are entitled to receive one free report each year from each of the three nationwide consumer credit reporting companies, Equifax, Experian, and TransUnion. Request the reports separately — for example, once every four months — so you can monitor your credit report throughout the year. Visit Annual Credit Report to request a credit report; you can do so online, on the phone, or via mail.
What do look for in your credit report
Review each section of your credit report to ensure accurate data.
Personal Information
- Verify that all information is accurate and up-to-date
- Look for unfamiliar names or addresses
- Minor variations (like abbreviations or old addresses) are normal
Credit Accounts
- Confirm you recognize every account
- Ensure closed accounts are marked closed, and paid-off loans are marked paid
- If an account shows as delinquent or in collections, confirm it’s accurate
Inquiries
- Soft inquiries: Pre-screen offers and account reviews; visible only to you
- Hard inquiries: Applications you’ve made for credit, like cards and loans
- Ensure you recognize all hard inquiries. Unknowns might be a sign of fraud
Public Records & Collections
- Primarily includes bankruptcies and collection accounts
- Ensure paid accounts are listed as paid
- Ensure no old negative item remains past the 7-year limit for credit report inclusion
Five ways to improve your credit score
Be punctual with payments
Tip: Automate payments to avoid late fees.
Pay down your debt
Tip: Reduce non-essential spending to pay extra on credit accounts.
Don’t max out your credit limit
Tip: Request a credit limit increase to lower utilization.
Maintain good habits
Tip: Keep accounts open and in good standing.
Chat with a Credit Counselor
Tip: Get personalized advice and dispute credit report errors. Seattle Credit Union partners with Greenpath to offer free financial counseling services to our members.