Review and Dispute Your Credit Report

I recently had the opportunity to speak with Bill Cloyd, a leading expert in credit restoration. During our discussion, I learned a few techniques that helped me further improve my credit score.

Before I share those techniques, I want to share several free resources that all consumers should be aware of. First, all consumers are entitled to receive a free copy of their credit report from all credit bureaus once per year through AnnualCreditReport.com.
Second, check out the Federal Trade Commission’s articles on consumer credit.

Assuming you are already familiar with these resources, here are some of the tips I learned from Bill.

1. It’s a good idea to check your credit periodically. Each person should decide the appropriate check-up frequency, but I typically review my information 2-3 times per year. After ordering my free credit report, I’ll use a service like Equifax’s 3-in-1 credit report to review my credit core.
2. Never submit a credit dispute online. Bill suggests disputing inaccuracies through a letter similar to the sample letter on the FTC’s website. Submitting your dispute online increases the chance the claim will be processed automatically. Who wants a machine processing matters related to sensitive personal financial information?!
3. As it pertains to credit scores, women are unfairly penalized for having a department credit card. Why? Credit bureaus, through statistical models, have determined that there is a correlation between gender, home improvement or discretionary spending, and department store credit cards. A similar analogy is how young male drivers are statistically more likely to be involved in an accident than a woman who is the same age and has the same driving record. Therefore, the insurance premiums are higher for men than women.
4. Make sure the credit card or cards you carry in your wallet are top companies such as Citibank, Chase, American Express, etc. Some companies that shall remain unnamed can actually lower your credit score because they have a lower Standard and Poors credit rating.
5. Consumers with high credit scores need to be constatly vigilant and protect their credit history as if it was one of the most valuable assets. Why? With identity theft on the rise, regular check-ups are one of the best preventative measures one can take to protect his/her identity. In addition, you are responsible for catching mistakes on your credit report.

Bill’s advice helped me take a “do-it yourself” approach to clearing up some inaccuracies on my own personal credit history as well as helping me improve my score a few more points.