Credit Update and I See a Light

I finally decided to pull my credit reports again after being afraid to look for more than a year. I used to pull my reports annually, but since I started becoming swamped with medical bills and credit card payments, I developed a kind of paranoia and fear about the state of my credit. A big, creepy credit monster was waiting there, I just knew it.

Some Things in Life ARE Free…Really

First, I always use www.annualcreditreport.com because it is an automatic credit report from all three credit bureaus (TransUnion, Experian and Equifax) every year for free. Everyone is entitled to a free report once a year, no hassles, no hidden fees. Free.

There are other ways to receive a free credit report, for instance if you have recently been denied credit.  I also read an article at CNN Money today which mentions that companies that offer those other types of “free credit reports” have to disclose that it isn’t actually the annual free report that you are entitled to and that it may be a part of a promotion or marketing for a service or product that costs money. This part of the new CARD act of 2009 will hopefully save a lot of people from getting duped into buying extra credit monitoring services and products just to get a “free” credit report.

The Monster was Quite Friendly, Actually

Anyway, it was to my great surprise that my credit reports aren’t as dismal as I anticipated. There is one medical bill ding on there that I can take care of easily within the next couple months, and one error that I will dispute online immediately. (By the way, 4 out of 5 credit reports have errors which can include anything from accounts that aren’t yours to incorrect amounts owed.)

The only other big problem on my reports was the utilization ratio of my debts. I could see that I need to work harder at paying them down. It doesn’t help of course that Chase Bank dropped my limit on one card to the amount that was owed. Having maxed out cards, or a high utilization ratio (large debt to available credit) can harm your credit immensely. I have paid down 3 small store cards and will continue to pay down the rest using the snowball method.

Hope is Inspirational

These are the only things I need to fix on my credit report, which surprised me quite a bit. Setting up the payment arrangements and making payments is not only getting things paid off but keeping my credit reports a little cleaner than I thought. Well duh…I hear you all saying. But, until you actually take a look it’s difficult to actually see that your hard work is helping. Or in this case what I don’t see (negative items on my credit reports) that have given me hope.

Not perfect by a long shot, but will be soon. Thanks for reading and in a way keeping me focused and accountable.

Have a great weekend and a fantastic family filled Easter!