What You should know about Credit

1. It's good to establish a credit history
2. Each time you purchase something on credit, or apply for credit, it's reported to a national credit bureau
3. National credit bureaus track your credit and payment history
4. if you apply for credit, a credit report is generated based upon your name and Social Security Number
5. A "Credit Score" "FICO" is a rating assigned to you based upon your credit and payment history, and is used by creditors or lenders to make decisions about your application.
6. You can and should obtain a copy of your credit report.
7. Your personal credit will affect your ability to get credit for a start-up business.

How to protect YOUR credit

1. Obtain a consumer copy of your credit report (small fee or free)
2. Clear up any disputes on your credit report. Do it in writing (you can do it yourself for FREE)
3. Do not carry too many credit cards
4. Protect your Social Security Number, do not give it out haphazardly.
5. Don't apply for credit too often; it will count against you.
6. Don't give your credit card number to telemarketers you're not familiar with
7. Be aware of hidden costs at check-cashing or rent-to-own establishments.

Ideas for Dealing with Bad Credit

1. Develop a budget and stick to it.
2. Obtain a consumer copy of your credit report (Free or a small fee)
3. If you find an error on your report, contact the credit bureau(s) in writing.
4. If you are denied credit, find out why
5. Contact creditors to make arrangements to pay back old debt.
6. Do not ignore student loans, utility bills or delinquent taxes-- PAY THEM!!!
7. Do not apply for more credit
8. Do not incur more debt
9. Keep only one or two credit cards; destroy others and close the accounts.
10. Work with a reputable credit counseling or debt management service.
11. Be wary of quick advertisements to repair credit--there are no easy cures. (These are scams)
12. Do not automatically file bankruptcy; it can be more damaging in the long run.

CREDIT BUREAU INFORMATION

Trans Union Corporation 1-800-916-8800 http://www.tuc.com/

Experian 1-800-682-7654 http://www.experian.com/

Equifax 1-800-685-1111 http://www.equifax.com/

Also contact your local

CONSUMER CREDIT COUNSELING SERVICE (CCCS)

1,400 OFFICES NATIONWIDE

The above information: was Prepared by NxLevel Guide for Micro-Entrepreneurs. I use the above information in my lectures and I teach through A New America Community Corporation