Your 30-day Credit Checkup: Week 1
In the first week of our month long guide on protecting and your improving your credit we explore the importance of knowing your score
By Sakina P. Spruell


Credit: Fabrice Trombert

Good credit is serious business-it can help you reduce debt, save money for your future goals, land a dream job (companies often run credit checks on job applicants), and break the cycle of living check to check. How's your credit? A healthy score is between 630 and 700; above 700 is excellent and below 600 needs work. Follow these steps to assess and improve your credit.

CHECK IT
Monitor your credit reports and scores. Everyone is entitled to one free annual report from each of the three main credit reporting agencies: Experian, Equifax and TransUnion. Go to annualcreditreport.com and request your free report from each credit agency to make sure that everything listed is accurate. If there are mistakes, notify the companies as soon as possible so that the information can be corrected. Mistakes on a credit report can affect your score and, consequently, your eligibility for loans and other credit accounts.

Experts advise checking your credit report twice a year to safeguard against fraud and inaccuracies. Carol Williams of Philadelphia, for example, monitors her report monthly. After years of being rejected for loans because of her credit card abuse in college, Williams, 40, started repairing her credit in 1992 and was in good shape when she was ready to buy a home, in 1996. She now subscribes to Equifax Credit Watch, which alerts her within 24 hours of any major changes to her credit report.

This came in handy when Williams noticed that a Visa card had been opened on her behalf as a "courtesy" by a department store. "I thought it was fraud, but the agency said it was a rewards card," says Williams. "So I called the store and canceled it. If it hadn't been for the alert, I wouldn't even have known it was opened."

Read Week 2 of Your 30-day Credit Checkup »

Have a credit story of your own? Share it below

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-5 latest comments

I too had credit issues that haunted me for several years. Purchasing things that I knew I could't afford and buying things for someone that I thought I was going to be with forever, only to have him take the items and run with them. A hard lesson to learn, but I swallowed that pill and I am on the right track now. Credit score went from 435 to 632. I still have a long way to go, but I am improving.

-Ms. L

My credit problem is. My sister ask me if I could help her get insurance for her car. When I went to the dealership to sign the papers, I had no idea I was co-signing. Well since my sister has had this car she has not made one payment on time. I have spoke to her and she will not make payments on time. I have move to another state. And because she doesn't make the payments on time. I can't get a place to live. Can you please give me some advise on what to do. sign Homeless.

-Liz

The first two series have educated and empowered me to make wiser choices. I made horrible credit mistakes and now on the road to recovery. I thank you for such good information. I love reading about other people's wealth and accomplishments. It's my turn now to recover and share my story. Keep great articles like this coming.

-Yolie M.

Like most people I recklessly charged things while in college and have since paid everything off. It has only been a few months since I have paid everything off, but my credit score is the same low number as it was before I started making payments. Its frustrating because I plan to purchase a house or car and yet I have this very low credit score hanging over my head. No one seems to be able to give me a direct answer. If anyone has any suggestions or comments I would greatly appreciate it.

-ALICIA W.

I read your article about what papers to keep and which ones to toss. I have a retirement package from a former employer that i cashed in.. I paid taxed however after I file my taxes how long should I keep it. In a ddition I was told 2 years for a tax return I got rid of a 2002-2005 tax returns is this okay?

-monica northington