Starting New Credit File Risky Business

Sometimes, in desperation to take a short cut to fix their credit report, a consumer might fall victim to scams that promise an easy solution to their financial problems.

Be wary of firms that promise an easy way to solve your credit problems by offering ways to start a new credit file.

It could be illegal, and it could wind up casuing you more problems than it solves. While the lure of starting a fresh credit file sounds appealing, the fact is, it's a simply a series of tall tales that will get you into hot water.

We posted the following article at FindHow2.com -- "Why getting new credit file is a bad idea" to help you steer clear of this type of scam.

Paying all your debts of time, ensuring that errors are removed from your credit report, and the passage of time are the three ways to overcome a poor credit history. It can be done. Just not the way scammers promise you. Stick to the simple steps we've outlined here at at our website, FindHow2.com, and you'll have all the tools you need to fix your own crdit yourself to improve your FICO credit score.

Mistakes Can Lower FICO Credit Score

Did you ever wonder why errors show up on your credit report?

According to MyFICO.com, errors in a person's credit report might mean their file is incomplete, contains information about another person, or any number of reasons:

Sometimes it's a simple credit report error like transposing numbers in a social Security number.

Sometimes it's a different name. A woman gets divorced, then remarries. A man applies for a credit card using an informal name ("Pete" instead of "Peter," etc.)

Sometimes a clerical error is made. A hand-written application might be illegible by the person typing the information into a computer system.

Sometimes a bank will be bought out, and credit information appears in both records (this has happened to me for a truck I had financed at a local bank that was later bought out by a national firm).

Sometimes payments were applied to the wrong account. Without checking your credit report, you'd never know that there was a late charge a year ago on an account.

Sometimes accounts you THOUGHT you had closed out and stopped making payments on actually are still open and are showing late fees.

Having credit report errors will not prevent you from getting credit. But errors -- whether they are your fault or not -- could effectively lower your FICO credit score. Having a low FICO credit score, in turn, could mean that you'll be paying more for refinancing your mortgage or getting a home equity loan at favorable terms.

Our suggestion: Get your free credit reports from AnnualCreditReport.com and check them over for accuracy. Also, take action and follow the free tips we've assembled at FindHow2.com to fix your own credit and improve your credit report.

Your credit score is a reflection of your own personal credit history, it is not etched in stone. Take action to improve your credit score, and you'll see your FICO credit score start to rise and the interest you'll be offered on future loans begin to drop!