Especially if you’ve had good enough credit to open an elite credit card with an excellent rewards program, it makes sense that some of your very first credit accounts are collecting dust. It might seem financially responsible to clean house financially and close some of your older or neglected credit accounts, but consider this: your oldest accounts are also your greatest and longest source of credit history. If you close them, the pool of information that dictates your credit score will shrink, making you more vulnerable to credit report dings.
Website: Visit AnnualCreditReport.com and follow the instructions. Once you fill out the necessary personal information, including your Social Security number and date of birth, you can select whether you want one, two or all three of the credit companies' reports right away. After answering some questions about your past addresses and accounts, you'll have a chance to download the report and view it on your screen.
Just want to read your credit report without seeing your score? You can do that once a year, completely free, at www.annualcreditreport.com. The nice thing about this government-sanctioned site is that you can request reports from all three bureaus: Experian, Equifax and TransUnion. Because some banks use only one or two of the reports to make lending decisions, it’s always a good idea to make sure all three contain accurate information about your borrowing history.
AnnualCreditReport.com is a website jointly operated by the three major U.S. credit reporting agencies, Equifax, Experian, and TransUnion. The site was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act (FACTA) to provide a mechanism for American consumers to receive up to three free credit reports per year.
Credit reports, remember, are a detailed account of your credit history. The key word there is “detailed” — expect to find more than just the names of your credit accounts, including credit cards, home, auto and other loans. You’ll also see the payment history, account balance, limit, open date and status (paid in full, not paid in full, closed or open). Plus, there will be information about new credit inquiries, collection records and public records, such as bankruptcy filings and tax liens. For a comprehensive look at what’s on your credit file, be sure to visit our credit report learning center.
Keep the first secured credit card you received, even if you don’t use it later. This card will establish the length of your credit history. Most people choose a no-fee rewards card or a bank credit card as their first credit account, so it doesn’t cost anything to keep the card for the length of your history. You can see a list of good no-fee rewards cards here.
Furthermore, unsecured revolving credit will be very difficult to come by. Insurance companies will tend to price insurance policies up for people in your credit category due to the potential for nonpayment of premiums or the higher-than-average risk for committing insurance fraud. Also, some jobs may not be available to applicants with fair credit, such as jobs in the financial sector.
It’s going to be extremely difficult to find any lenders willing to lend to you without a significant down payment or collateral to secure the loan against default. Insurance agencies will still underwrite insurance policies for you, but the products will be limited and they are going to cost significantly more than the same products for customers with better scores. You may also have higher car insurance costs.
If your credit score is between 750 and 800, you have a long and distinguished credit history that shows a responsible payment history and the ability to handle multiple types of credit responsibly. As a matter of fact, for the most part, you are regarded in the same standard as borrowers with excellent credit history, with the exception that you may have a higher debt-to-income ratio.
help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.