Sometimes, even when you strive to protect your credit history, you may find that your rating is below what you expected. What if you discovered that you have poor credit? What can you do to regain a good credit standing? Below are practical suggestions on how to build good credit with credit card for students:
Regularly look into your credit report. Do you regularly check your personal credit report? You should order a copy of your report from all the three major credit bureaus (Equifax, Experian, and TransUnion) at least twice a year to ensure that it contains no errors or incorrect information. You can also take advantage of your privilege to a get a free credit report once a year by visiting AnnualCreditReport.com.
Examine your report for errors. Erroneous credit reporting is a fairly common case. Sometimes creditors may report inaccurate information to the bureaus. Sometimes the credit reporting agencies commit the errors themselves. There are also instances when your record gets mixed up with another person’s credit history. This is why checking your credit report is very important.
Compare all three credit reports. Remember that each report you obtain from the three credit bureaus (Equifax, Experian, and TransUnion) may not be exactly the same as the other. If you find discrepancies with your personal details, payment history, or within any section of your credit file be prepared to find a dispute.
Send a letter of dispute. The Fair Credit Reporting Act gives all consumers the right to dispute credit report errors. If you are a teen who owns a student credit card, do not hesitate to exercise this privilege. The credit bureaus must investigate on the issue as soon as they receive a letter of complaint or dispute from a consumer.
You can find sample credit dispute letters from the internet that you can use as reference in creating your own. In your dispute letter, clearly point out the error that you want to be corrected. You should also send a photocopy of your report (with the items in question clearly marked); as well as photocopies (NEVER ORIGINALS) of receipts or other documents that prove your claims.
Send your letter through registered post mail to the credit reporting agency that issued your report. If you do not get a response after 10 days, send a follow up dispute letter. The investigation can take up to 30 days to complete. After this period, the bureau must inform you about the result of the investigation along with a free and updated copy of your credit report.
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