• Having Credit Where Credit Is Due: Monitoring Your Score



    The way you maintain and monitor your credit report can impact your financial picture now and well into the future. The Federal Trade Commission reported in February 2013 that about 5 percent of people have errors in their credit report. A bad credit report can affect how potential employers view you, whether you get favorable terms on a loan and much more.

    The payday loans Denver has available do not generally involve a formal credit check, but the way you pay them off can impact your credit report, and so can every other financial decision you make. Getting into the habit of checking your report regularly can help maintain your overall financial health.


    What Goes Into a Credit Report?

    A credit report offers a detailed list of your borrowing history by the three major credit reporting agencies: TransUnion, Experian and Equifax. Your credit report will offer information about your payment history, how much debt you have and how long you have used credit. It will show how much debt you have overall and what types of credit you are using.

    How Often Do I Need to Check It?

    Experts recommend looking at your credit report once a year. You also should check your credit whenever you think any suspicious activity may have occurred – if your wallet has been stolen, or if you have gotten calls about bills you do not recognize. The three credit reporting agencies will each send you a free report every year, but you have to ask for it.

    What if I Don’t Recognize Something on My Report?

    The Federal Trade Commission recommends informing the company reporting that information, in writing, that you think it is inaccurate. There is even a sample letter on the commission's website. Credit reporting agencies are required to investigate the items you question within 30 days. They must offer you the results of their investigation in writing. If the information in the report is proven to be incorrect, the entity that reported it can be required to inform any employer that was given the incorrect information in the last two years.

    How Can I Improve my Credit Report?

    If your report is correct but relatively negative, there is not much you can do besides wait. Bankruptcy information stays on your credit report for 10 years, and most other negative information stays for seven years. The future is always bright for your credit, though. Bad financial decisions do not haunt you forever, and nonprofit credit counseling organizations can help you find ways to manage your money more effectively. Your score will continue to improve as you make timely payments and develop a favorable debt-to-credit ratio (low balances even if you are qualified to borrow much more).

    The cash loans Denver has to offer can provide short-term solutions to financial crises. Colorado payday loan laws are strict, but they still allow lenders to charge 45 percent interest, which is fine in a pinch but definitely less than ideal as a long-term solution to money problems. Maintaining and monitoring your credit can help you avoid ever needing the quick loans Denver has available.

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