You and Your Credit Report

Photo Credit: Brooke Parker Photography

By Brittany Bettini

Hey, ladies! It’s your financial BFF, Brittany Bettini. I’m ready to spill the tea on something that we all need to pay attention to, but often put on a back burner because we think it’s “too late for us” or feel extremely self-conscious asking for help.

CREDIT REPORTS!

Yep, I know. Snooze-fest. But let me tell you, understanding your credit report isn’t just about numbers. It’s about taking control of your life. These days, everything requires a quick soft pull of our credit scores and reports. So while it may be a boring subject for most, it’s a MUST HAVE conversation.

What Is a Credit Report?

First and foremost, what the heck is a credit report, anyway? Think of it as your financial report card. It shows your borrowing history, how much debt you have, and whether you pay your bills on time. Like you’re either a financial superstar or you’ve had a few slip-ups. 

So, you decide to finally take a peek at your report, and you expect a glowing review. ‘Oh no, what’s this? I never bought that. I don’t own a house in Wisconsin. That isn’t my name!’ Breathe. It’s okay. It happens more often than you’d think. There are so many ways to get your account accidentally tangled with someone else’s, or simply mixed up. Or, there is a late payment charge–’But I swear, I made that bill on time! That’s not even my account!’ That’s where the adventure truly begins.

You Found an Error. Now What?

You’ve spotted an error. Now what? Time to put your detective hat on and dispute that sucker! Fortunately, you have the Fair Credit Reporting Act on your side! This law states, “credit reporting agencies must investigate disputed items within 30 days of receiving your dispute”.

But, my friend, hold your horses. Don’t expect instant results. This process can be like waiting for water to boil. It takes time, work, and a lot of follow-up. But don’t be afraid; after all, every step you take is one step closer to financial freedom! 

Remember: it’s not a walk down memory lane. Certain aspects of mitigating errors flow faster than others. Sometimes, attempting to remit errors can feel like navigating a maze. 

Frankly, it’s a lot of research, a lot of writing, and a lot of procedure. Disputing mistakes may also be a costly process. You may have to send a lot of letters, make many phone conversations, and provide a range of documents.

Disputing errors takes time and, sadly, may be a financial investment. Have you considered what it costs to hire a credit fix company? But don’t think about it; regard the hard work as an investment in yourself. With this little sacrifice now, you’ll have good finances in the future. The same home or car could cost 65% more for a boss babe with bad credit, due to the interest paid over time. This is financial planning, and investment returns you won’t want to miss!

Discipline Is Key

Sister, remember – discipline is key. Choose to make good decisions every day, like cooking instead of ordering delivery, or anything but spending a whole paycheck on that designer purse. I promise you, your bank account will thank you later. 

If you don’t have the self-discipline to control your utilization, you might ruin a good credit score in a matter of months. I would advise you to keep your balances low. The generic rule of thumb is to stay below 30% utilization. How much below 30% varies based on your personal situation. I recommend that you not spend more than what you can completely pay off within 2 statement cycles–anything above that is just looking for trouble.

As you battle the twists and turns of credit repair, I want you always to maintain sight of the prize: total financial freedom. Imagine the life you will have with a clean credit report, unlocking doors to low-interest rates, better loan terms, and maybe even your fairytale home or automobile. 

Even better, darling, you will emerge from this war more robust, knowledgeable, and empowered than ever. Every financial challenge that the world will throw at you, you will be able to tackle professionally. Don’t resist the urge to peek behind the curtain on your credit report. It might be a wild and bumpy ride, but you will have the delightful sight of the mountaintop. Trust me, the view is worth it! When you get there, clink your glass and raise a toast to owning your financial destiny, one dispute at a time.

To sum up: bad times always happen, but they should not shape us. With time and a sprinkle of discipline and determination, no financial hardship will be too much for you to overcome. Your financial future is waiting for you!