According to
a new study published in the CSA Journal (Society of Certified Senior Advisors)
seniors build up greater amounts of debt and have more credit report problems
than younger people. While 1 in 3 people of all ages find mistakes on their
credit reports, an even larger number, 36 percent of seniors found errors. In
one of four cases the errors where significant enough to have a negative effect
on their credit scores.
The study
also concluded that young people watch their credit score more closely, while
only 1 in 4 seniors did so. The Society of Certified Senior Advisors urges
seniors to regularly check their credit reports. Free consumer credit reports are
available at AnnualCreditReport.com.
These are
some tips to make sure your credit report is accurate:
Run an annual Credit Report: A free annual credit report is
available at AnnualCreditReport.com. To get the actual credit score you’ll have
to pay. But the report alone will allow you to check for errors and mistakes.
Fix Errors: By law, credit bureaus are required
to correct any errors. If you spot a mistake, contact them either via website
or phone or send a letter and explain what’s wrong.
Keep Copies: Make and keep copies of everything
you send to the credit bureaus and request a delivery confirmation at the post
office to make sure they received your mail.
Beware of Scams: A flood of companies offer to improve your credit score for a fee,
but easiest and cheapest method involves a pretty basic technique: Pay your
bills on time, stay well under your credit limits and keep your accounts in
good standing over many years
.
Pay your bills: The best way to boost a credit score
is to pay bills on time and keep accounts in good standing over many years.
Avoiding credit altogether can do more harm than good, since lenders want to
see that consumers have experience managing credit accounts.
Don’t Co-sign for Anyone: Even spouses can harm each other’s
credit by co-signing for a credit card. Once your name is on account, you’re
responsible for it, even if you break up. So limit your exposure to that risk
by avoiding co-signing accounts whenever possible.
Despite
rumors to the contrary, having a good job does nothing to boost a credit score.
In fact, income has no effect whatsoever on a score. The only thing that
matters is your credit history—whether you pay your bills on time.
If you do
run into financial trouble and have to resort to filing for bankruptcy, your
credit score can begin to rebound after one year of making on-time, regular
payments. Then, after seven to 10 years, it can fully recover.
Bottom Line: Use AnnualCreditReport.com once a
year to check for any errors on your report and pay bills on time. Consider
helping any older relatives to do the same.
Source: Money.USNews.com
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