Your credit report tells businesses how much money you owe and how you pay your bills. Businesses use that information to decide how to treat you. Can you get a loan? How much will it cost? How about a security clearance, job, insurance, apartment, credit card, or mortgage? All these things can depend on whether you have good or bad credit. Right now, you have a perfect opportunity to build a solid credit history for your future.
Know your story. It’s free to get your credit report from AnnualCreditReport.com. Right now, the three nationwide credit bureaus — Equifax, Experian, and TransUnion — let you get your report for free online once a week from each bureau at AnnualCreditReport.com. These weekly reports are in addition to the free yearly credit report the law says you get from each bureau at AnnualCreditReport.com or by calling 1-877-322-8228. On the site, answer some questions, then give your address, Social Security number, and date of birth. Ask to show only the last four digits of your Social Security number on your report.
Read your credit report. If anything is wrong, dispute it. Send a letter to the credit bureau that has the wrong information and a letter to the business that supplied the incorrect information. Ask them to correct the wrong information. Send proof, like a copy of a bill that shows the correct information. They have to check it out, correct the information if they find it’s wrong, and write back to tell you what they found. Still not satisfied? Include an explanation in your file about the issue.
Take advantage of free electronic credit monitoring services from Equifax, Experian, or TransUnion for active duty servicemembers and National Guard members. This free credit monitoring service scans for activity on your credit reports.
Contact a PFM. They can help you get your free FICO credit score through the FINRA Investor Education Foundation. It can help to know your score before you try to buy a car or a house.
