Credit Cards

Are you one of the few individuals who do not have any credit cards? 

If you are, this is a great thing for you.  However, having no debt could actually hurt you in the future. Without a credit card or any liabilities, you won't have a credit history, and it's that history which lenders use to decide if they want to give you a loan. So if you ever plan on buying a home, a car, or applying for a business or personal loan, you need the payment history that comes with owning and using a credit card. 

You do not need to charge an extreme amount every month, just make small purchases and pay them off every month. It is important to use credit cards wisely and to understand your credit.

One of the most important numbers you have is your credit score. With identity theft on the rise and our credit being checked for many things we do in our life it is imperative that we stay on top of our credit. 

Did you know that you can get a free credit report every year? You get the report at www.annualcreditreport.com.

There are three credit bureaus: Experian, Trans Union, and Equifax. 

When you go to this website you can get a copy of your credit report from each credit bureau for free once a year. The best way to do this is to go to the side and use Experian, and then three to five months later go to the same website and use Trans Union and so on.  ou will need to pay extra to get your credit score. Your score is important but what is most important is your report.

What you will get for free is your report—which is lengthy and can sometimes look like it's written in a foreign language. But, you want to take time to go through your report. If there are any errors on your report such as your name, something regarding an account or your address you want to correct these. 

The report will also show you any accounts that are open but that you are not using. You may want to close some of these accounts.  if you have ever gone to a store and signed up to get 10 percent off and got the card in the mail and shredded it, this still is an open account and will show up on your credit report and could lower your score.

You do not want to do an internet search for there are so many companies trying to make a dollar off of identity theft. 

So, specifically go to www.annualcreditreport.com. It is the only site that will allow you truly a free report with no strings attached. Your credit report is like your report card and you want to actually look at it to understand your credit.

To find out more about Nicole Middendorf, visit www.prosperwell.com