Sen. Dick Blumenthal wants explanations from the three credit rating bureaus about a New York Times report about a VIP list they allegedly keep that favors the rich and famous over everyone else. The article says the Connecticut Democrat wrote a letter Monday to Equifax, Experian and TransUnion about the reported separate system in which errors and disputes are resolved faster and with more attention than with other consumers, who must rely on an automated system and outsourced customer support to clear up mistakes.
“I am deeply troubled by the implication that your companies are neglecting the majority of consumers and providing preferential treatment for wealthy, famous or well-connected persons, and I ask you to confirm or deny these reports and provide more information on your dispute resolution process,” he wrote in the letter.
“An error-free credit report is vital to a consumer’s financial health, and consumers must be able to quickly resolve disputes and mistakes with the cooperation of the credit reporting bureau,” he wrote. “Every consumer deserves this cooperation, not just the rich and powerful.”
But the credit bureaus deny keeping VIP lists, all according to the article On May 17, 2011 FoxNews.com.
The good news is now we all know what may be the easiest way to ensure ourselves a good credit score…just become rich, famous and well connected! Just in case you think that might be an unrealistic plan for you, here are 5 solid tips that everyone should know and follow.
- Pay your bills on time. Of course you should pay your bills on time, it sounds simple but it doesn’t just stop there. If you get in a situation where it is impossible to pay the minimum on all your bills, try to look ahead and see if you can get things caught up before they go 30 days past due. This is important because if you are reported as 30 days past due, this will be a negative on your credit report for 7 years. Know that just paying your bills on time is not a guarantee for a good credit score! Since this area makes up only 35% of your FICO score, you need a more comprehensive credit plan in place, but this is a good start.
- Keep your credit card balances low. This is the most misunderstood component of the FICO score. Most people have no idea what this really means and more importantly what is optimal. Too make this as simple as possible, make your overall goal to only have a balance of 7% or less of the total limit, for example if your credit card limit is $100 try to have the balance be $7.
- Do not close your credit card accounts. This advice is easy and applies to just about everyone, so if in doubt, leave the card open!
- Only apply for things you need! Be strategic about the things you apply for. Only allow someone to pull your credit if you need the credit or you are doing things to build your credit profile. In case you are wondering, getting 10% off at your favorite department store by applying for their credit card is not a “need”. Stay away from those “spur of the moment” decisions when it comes to your FICO score.
- Check your credit regularly for errors. Whether the bureaus want to admit it or not, a large number of credit reports have errors. Check yours to make sure it is accurate. I recommend going to www.annualcreditreport.com. You are able to check with all three bureaus once every 12 months and it is free. They might try to sell you a “credit score” for $7.95 but don’t waste your money on it. Get the free report and look it over carefully.
These are five easy tips that can help you take control of your credit life. And they are not unrealistic or far-fetched. They are simple and anyone, not just the rich and famous, can do them. Good luck, and as always remember credit education is extremely important, make sure that the advice you follow is from an expert and complete.