With the start of the New Year and the approach of tax filing season, it is the perfect time to evaluate your financial condition and making sure there are no signs of identity theft, begin planning to improve your credit history, and correct errors. For millions of Americans this means looking back at what was an extremely difficult year and half. The economic recession led to many black marks on credit reports because of foreclosures, late payments on credit cards, and loan defaults.

Unfortunately there are also millions of people right now who are facing collection agency efforts to collect past due funds. Businesses are making use of collection agencies sooner than they did in past years as the number of late payments and defaults rise. Though the law prohibits the abusive actions they used to be known for utilizing, collection agencies remain persistent and unrelenting in their demands for payment.

There are many reasons beyond checking the status of defaults on debt for verifying your credit history. People who have changed addresses sometimes fail to get statements and notices from debtors. Right now credit card companies are busy changing their interest rate and fee policies ahead of the implementation of the Credit CARD Act that places limits on these activities. One late payment is all it takes to see your interest rate double or triple and to be charged an exorbitant late payment fee. The fees for over-limits are skyrocketing too.

For all these reasons, now is the time to review your credit report. Each consumer is allowed to request a free credit history from one of the major credit bureaus each year. With the credit history you can check for the number of late payments, closed accounts, unauthorized use of your name and social security number to obtain credit, and outstanding balances compared to available credit. Any questions you have should be directed towards the company which means making a telephone call or writing a letter.

The credit history is a snapshot you can use to look for errors and identity theft. It is not your credit score though. Many consumers don’t understand this and are surprised they are unable to get their credit score until they pay a fee. The law only says you can get a free credit history or credit report.

There is only one place to go to collect your free credit report. Consumers should go to AnnualCreditReport.com and request the report. In some cases, you will be asked to download a form from AnnualCreditReport.com for completion and mailing. The site will ask you a couple of questions that you should be able to answer to confirm your identity. If your answers do not match what the site expects as the correct answer then you must mail in a form with proof of identity to get your free credit report. The fact you cannot answer the questions as expected does not necessarily mean there is a problem. Companies (like mortgage companies) are constantly merging and being bought out, and you may not be aware the name has officially changed for example. So don’t panic if the website asks you to download and mail in a form.

You can also call (877)322-8228 and request your free credit report.

One of the advantages of requesting your free credit report through AnnualCreditReport.com is that you will not be asked to buy any other services or products.

The New Year is the perfect time to get your free credit history and start the year fully informed about your credit status.

You have heard all the typical ways of approving your credit scores at least a hundred times but these are not the only steps you can take to increase your credit score. Take a look at these new ways to improve your credit score. They could make all the difference.

Ensure That Credit Bureaus Are Aware Of Your Credit Limits

Most people assume that credit bureaus have all the information but this is not always true. Some credit card companies neglect to submit your credit limit along with the rest of your relevant credit information.

This could cause problems for you even if you do not have any credit problems to speak of. Without your credit limit as a reference point, potential lenders and others who check your credit score could be misled.

A high balance on a credit card is a relative thing. For example, $1,000 may be a high balance for a credit card with a credit limit of $1,200 but not for one with a limit of $10,000. If you take the time to make sure that each of your credit card companies reports your credit limits then your score will accurately reflect your situation. This can improve your credit score instantly.

Make Sure That All Your Positive Past And Current Credit Is Represented On Your Credit Report

You have taken the time to maintain your good credit but your credit report may not reflect this. Sometimes not all of your past and current credit information makes it onto your credit report. If these missing accounts of your credit history are positive and are omitted then your credit score may be lower than it should be.

The way to fix this is to request a copy of your credit report and to review it. If you find that information is missing then you will need to contact the appropriate lenders to ask them to submit this information to the credit bureaus. You also have the option of contacting the credit bureaus directly with documentation proving that your good past credit accounts exist. This move allows you to benefit from all of your good credit history. Without the benefit of all your good credit, any credit mistakes you have made will adversely impact your credit score more than they should.

Don’t Add Or Close Accounts Without Considering The Effects

You do not want to make these changes without thinking them through first because they could lower your credit score instantly. Applying for numerous new credit accounts can lower your credit score all on its own. This is why you never want to apply for new credit accounts unless they are completely necessary and you have weighed the pros and cons of this action.

Likewise, you don’t want to close credit accounts. This will lower your credit score by shortening your overall credit history and lowering your available credit. These tips are more about protecting your score but a credit score saved is a credit score earned.

Everyone can stand to know how to improve their credit. It will come back to haunt you if you do not maintain or regain a good credit score. Use these new ways to improve your credit score.

Did you apply for credit, but you were denied because of something that is in your credit file? This happens more than you think, but if you are sure that there should be nothing in your credit file that would keep a company from granting you credit, contact the credit bureau listed at the bottom of the letter you will receive.

Did you fill out a job application, go to an interview, and leave with a good feeling, sure that you were going to get the job? Then you wait anxiously for the phone call, telling you when to report for your first day. Instead, you get a letter from the company you applied to, telling you that you were not suitable for the job. At the bottom of the letter is some information which you follow up on, only to find out you were denied the job because of your credit report! Get in touch with the credit bureaus and see what the problem is!

Were you denied home, auto, or renter’s insurance because of something that appears in your credit file? You will more than likely get a letter informing you of this, and at the bottom there will be a paragraph that will tell you which credit bureau was contacted. Be sure to follow up with the credit bureau and do what you need to do in order to correct this information so that you can get your insurance!

Are you out of work? Will you be searching for a job anytime within the next 60 days? If so, you can request a copy of your credit report so that you can see what is listed there. This will prepare you for your job search. If your credit is lackluster, you may want to limit your search to those employers who do not check the credit records of potential employees.

Are you on welfare? Or, were you denied the opportunity to rent a home or apartment because of something listed on your credit report? Check with the credit bureau to see what is going on with your credit report.

Are there any errors in your credit file that you already know are there because of fraud or identity theft? If so, you have a right to request a copy of your credit report whenever you need to check and see if any of the erroneous information has been removed from your account.

Checking your credit report for any of these reasons is free. Do it today!

Related pages

• Credit Repair FAQ
• Rebuild Your Credit