It is important to review your credit file on a regular basis to see what is actually going on in your credit file.

If you have the money to do so and you feel it is important enough, it would be a good practice to engage in a credit monitoring service that will mail or, better yet, email you when there is activity on your credit file. You especially want a good credit monitoring service if your job requires a healthy credit file and credit score or you feel that you may be at risk for identity theft.

With a good credit monitoring service, you will be immediately notified when things are happening and you can tell quickly what is authorized and what is not.

I would suggest going with http://www.MyFICO.com as a good monitoring service because the scores they give are the most realistic. (And no, I do not get a kickback or a fee for sending you there. I am just aware that they have the best credit scores for monitoring.)

Of course, there are other services out there that vary in price and service.

If you have one that you feel is especially good in service and benefits, please inform me at Esteembuilder@gmail.com I would love to hear from you and know how you feel these services have benefited you.

Also, if anyone has a good story or testimonial, please send it along.

Credit is a tricky subject because we don’t have the secret key that unlocks the proprietary information or formula of the credit bureaus and Fair Isaac Corporation. They created the scoring modules that are in use today to create credit scores on the information in your credit file. However, through exhaustive research and intensive study, we have come to see the secrets and tricks the credit bureaus use and understand how it works… almost.

Because there are hundreds of factors involved in creating a scoring module and how it affects the information in your credit file, it is difficult to ascribe a perfect number of points to what a tip or strategy will do to increase or decrease your credit score. However, this much we absolutely do know… that if you do follow the tips and strategies in this book then you will see a rise or fall in credit points depending on if the action is a good action or a bad action on your part.

Take heed to read the tips and strategies and relate them to your own credit file and the information contained in it. Read it, get to know it and then read the strategies to use to get your scores going up instead of down. This will help you get the highest scores possible and create an opportunity for a great financial future . Now, go and get start and remember, that Every Point Counts!

There are 5 areas of importance in the scoring modules of the credit bureaus.

They are:

1 – Bill payment history – 35% of your score is attributed to this section.

2 – Account Balances – 30% of your score is attributed to this section.

3 – Length of time opened – 15% of your score is attributed to this section.

4 – New Accounts – 10% of your score is attributed to this section.

5 – Types of credit used – 10% of your score is attributed to this section.

Terms:

Creditor = the company that extended the credit to you.

Payee = the company that you make the payments to.

Payer = this is you, the person that makes the payment to the company (Payee) that you owe.