| Building a Better Credit Report |
 If you've ever applied for a loan, you likely know there is a file about you. This file is known as your credit report. It contains information on where you live or have lived, how you pay your bills, and whether you've been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment or a lease. Having a good credit report allows you to get loans at lower interest rates. A lower interest rate means that your total cost of borrowing is less. The better your credit score, the less it costs for you to borrow. Nevertheless, we are inundated with ads from companies and services that promise to erase inaccurate negative information in your credit report in exchange for a fee. The organizations that run these ads not only don't deliver — they can't deliver. Only time, a deliberate effort and a plan to repay your bills will improve your credit as it's detailed in your credit report. The Federal Trade Commission (FTC), the nation's consumer protection agency, has a website dedicated to helping you better understand your credit report. |
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