each credit reporting agency once a year at AnnualCreditReport.com. Epstein suggests spacing out your requests to see your reports throughout the year so that you get the reports for free but look at a different time period from each bureau. Start by examining the names and addresses on your report. “If there’s anything you do not recognize, it’s possible that your credit report is tied to someone else’s,” Epstein says. Then check to make sure that everything on your report is being reported accurately. If you have accounts you don’t recognize, it could be a sign of fraud.
If you find mistakes on your credit report, tell the credit reporting company and the lender that provided the information to the credit agency, in writing, what information you think is inaccurate. The Federal Trade Commission offers sample dispute letters that consumers can use as templates.
Taking charge of your credit score and your budget
Low scores are a call for action. If you’re living beyond your means, it’s time to take charge of your financial life. Start by tracking your expenses so you can figure out where your money goes. Financial experts suggest writing down every expense for a week, or a month. The results could be eye-opening.
If logging all your expenses seems too tedious a task, use a budgeting website such as Mint.com. Then figure out what’s going wrong. Are you spending too much on restaurant meals and vacations? Is there a way to create some room in your budget by cutting expenses, or by earning more?
Budgeting is especially important if you’ve lost your job or gone through a divorce, two prime reasons consumers run into financial trouble. If either scenario applies to you, it’s important to