Dealing With Negative Credit Report Information
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Teach Your Teen Good Credit Habits
By Drew Kessler As a parent to a teen, you have to watch your child go through some scary milestones. What could be scarier than letting your teen drive for the first time? For some parents, seeing their teenager with a credit card is even more frightening! Your teenager won't be eligible to apply for their own card until they're 18, but here at the National Foundation for Credit Counseling (NFCC), we recommend taking age-appropriate action to show your children the value of a good credit history and smart credit habits before that time comes. 1. Make them an authorized user An authorized user is someone you add to your credit card account as an additional user. You don't have to give your teen their own credit card when you go this route, but it still helps them in a major way. As an authorized user, the history and payments on your credit card will show up on their credit reports. So if you've used the card for 10 years, your teen will suddenly have 10 years' worth of credit history — which helps build up their credit scores. 2. Set specific credit card limits If you decide your teen...
Read MoreWhy Do Your Credit Reports Matter?
Have you ever pulled your credit reports? If so, there's a good chance you found them difficult to understand, or maybe you even found errors in them. According to the Consumer Financial Protection Bureau (CFPB), which releases a yearly summary of consumer complaints, credit reporting errors are a major problem. In recent years, issues with credit and credit reporting have accounted for 85% of the complaints the CFPB has received. What does that mean for you? It means that checking your credit reports, understanding what's in them, and dealing with any errors you find are more important than ever. If you don't, you could find yourself in a bind when you want to take out a credit card or a loan, or when you need a new apartment. What information is in your credit reports? It's important to understand what a credit report is and what it isn’t. At its core, a credit report is a track record of your history with debt. Your reports give creditors, landlords, and in some cases employers, a quick way to evaluate how risky you are. Your credit reports contain the information you've included in applications for credit in the past, as well as...
Read MoreHow does credit counseling affect my credit scores?
The NFCC often receives questions from readers about their money challenges. We answer common questions in our Ask an Expert series to help readers find the information they need. Question: How does credit counseling affect my credit scores? Answer: Dear Reader, I applaud you for recognizing the importance of having healthy credit scores. A healthy credit rating can help you secure a home loan, qualify for auto financing and get the lowest rates available on credit cards. Fortunately, our NFCC-certified credit counselors are here to help you achieve your financial goals, and that includes improving your credit. How do credit counselors help you improve your credit scores? First of all, it's important to know that simply talking to a counselor about your financial situation will not impact your credit rating at all. If you choose to schedule an appointment with one of our counselors, you can expect to receive expert input and tips on how to improve your credit. During an appointment, your counselor can provide you with the following services: Reading your credit reports and offering personalized tips for improving your scores. Reviewing all of your expenses and income to help you create a budget. Providing resources and support...
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