Top What Can You Do?

Some people believe using credit in this way is unfair. After all, many people are losing their jobs during harsh economic times, and have worse credit as a result of missing a bill payment. Also, credit score companies are private; unregulated by the government, they might have the wrong information on your credit report and have little incentive for correcting the information in a timely manner.

To make sure your credit report is accurate, always check your credit report once a year. You are entitled to an annual free credit report. This will give you your credit score and also list all your credit-related activity from all three credit reporting agencies.

Check the report over carefully to make sure the information is accurate. If you find inaccurate information, you must write a letter to the reporting agency stating what is inaccurate and why. Provide copies of documents that support your cause.

For more information on credit repair, read the Federal Trade Commission’s Credit Repair page. Do not hire companies to remove bankruptcies or other spots on your record; this is impossible.

Top Not Every Company Checks Credit

It’s important to know that not every insurance company uses credit to determine rates. Some only check the driving record. As you shop around for insurance, ask each agent what the company's policy is.