Your First Steps - II

3. Establish and maintain good credit. 

Good credit is essential to any sort of financial independence. Get credit in your own name through a personal credit card. Without good credit it will be nearly impossible for you to borrow money to purchase a home or car, or even get a credit card, without assistance. Good credit means more than just paying your bills on time. While that is a critical part of maintaining a good credit rating, you must also check your credit report and credit score every year to make sure that there are no inaccuracies. Credit Reporting Agencies collect information about you and your credit history from public records, your creditors and other reliable sources. These agencies make your credit history available to your current and prospective creditors and employers as allowed by law. Credit scores range from 300 to 850. You’ll need at least a 620 to be considered for any type of mortgage, but in order to get the best rates and most favorable terms, you’ll need a score of over 700. A recent study suggests that over 79 percent of all credit reports have at least one error. The same study showed that over 50 percent have an inaccuracy that drops a credit score by at least 50 points. Three major national agencies keep track of credit, and they often don’t coordinate. Yet, no bank or mortgage company will loan money without checking at least one of them.

The credit reporting agencies are:
Equifax
PO Box 105873
Atlanta, GA 30348
(800) 685-5000
Experian
PO Box 2002
Allen, TX 75013
Consumer Credit Questions
(888) EXPERIAN (888-397-3742)
TransUnion
Post Office Box 2000
Chester, PA 19022
(800) 888-4213