Improve Your Credit Score In Five Easy Steps

Maintaining a good credit score is incredibly important. Whether you're applying for a new car loan, shopping for a cutting-edge computer or are looking to buy a new house, a good credit report can often mean the difference between success and disappointment.

But don't worry – there are things you can do to make sure your credit report passes with flying colors. Follow these five steps and you'll be well on your way to a credit report you can be proud of.

1. Double-check your existing credit report.
It's a good idea to check out your credit report as it stands now. You might just find an erroneous entry or two that can be cleared up with a simple phone call. Why have question marks on your report when you don't have to?

You can get a free copy of your credit report at www.annualcreditreport.com . Additional copies are not free, but federal law says you can get one free every 12 months from the three main national credit reporting companies (Equifax ® , TransUnion ® and Experian ® ), all of which partner with this website.

Alternative ways to get it are to call 1-877-322-8228 or fill out the Annual Credit Report Request Form found at www.ftc.gov/bcp/conline/include/requestformfinal.pdf and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

2. Never make a late payment.
It sounds simple, but sometimes this is very difficult. There are many obstacles that can get in the way of paying bills on time, but to preserve your good credit score you must do your best. One way to help yourself is to set up automatic bill pay like the online service we offer at North Dallas Bank ( www.ndbt.com ). That way you don't have to remember the stamps and the envelopes, but you do have to keep enough money in your account to avoid overdrafts.

3. Learn what directly affects credit scores.
Knowing what can adversely affect your score is a good way to keep it looking good. Here are a few negative things that can show up:

History of late payments, prior referrals to a collection agency or filings of bankruptcy.
Outstanding debt, as compared to your credit limits.
Short credit history. This might not matter very much if you've been prudent with your money and payments.
Too many applications for credit. You don't want to have too many credit accounts. FYI, requesting your own credit report and instances of other people or companies evaluating your report does not count for or against your credit score.
Types of accounts. Too many credit cards or finance company accounts may not reflect well on your score.

To learn more, go to www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm .

4. Be familiar with all the legal aspects.
Knowing where you stand in a legal sense can be extremely comforting. You can avoid unwanted surprises just by staying informed. Plenty of information about your legal rights and responsibilities can be found here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm

5. Watch out for scams.
Many scam artists masquerade as credit experts that can help you "fix" your credit report. Don't believe them. If you have to repair your credit report, do it yourself, or at least work with legitimate resources.

And of course, North Dallas Bank and Trust stands ready to assist you in any way we can. Feel free to call us anytime at 1-972-716-7160. We'll help you make your credit report the best it can be!