This transcript is automatically generated
So we have all been through it you try to buy a house or -- apartment a get a credit -- you apply for some jobs you are subject to a credit -- Where you expect well today.
The Consumer Financial Protection Bureau announced that starting in September they're gonna start overseeing credit reporting companies that includes the Big Three.
Experian Equifax and Trans Union.
So that's a government they're gonna get all better.
Don't hold your breath let's bring in Derek can -- financial advisors.
-- & Associates you know what I I'm not gonna wait I I hope the government does straighten this out because we do need some oversight in this area but I'm not gonna wait for that.
Give me three things that I can do today to fix my credit report.
Well great to be with you Melissa one of the things that -- -- to realize -- your credit score dictates a large part of your financial future.
People with a better than average credit score get better rates on loans for houses cars except her.
That can save them hundreds of thousands of dollars for their entire life -- -- -- -- -- So here's my person to -- -- Number number one has to assess the damage.
Call each of those companies and asked for your free credit report once a year.
And see what's on there so many people have no idea what's on their credit -- you think that's number happens.
They have no idea they can control and influence it and how you -- number two is.
Called the credit card companies -- there is a discrepancy on that statement if you have a slow -- tape perhaps a credit issue has come up.
Call those companies you can put a note on there if there is sort of an extenuating circumstances.
Let them know what happened is they key is -- you've got to take control of this to lower your rate.
We do like Paul and he can he -- drug called the company that made the mistakes I call the credit card company or whoever it is.
Or do I call their credit reporting agency and tell them who makes the note that it's really you know an extenuating circumstance or mistake.
They know it goes directly to the supervisory.
Committee itself in other words the Experian and the -- union called them and let them know.
But trying to work out those details with a credit card company themselves.
And also make sure you keep record of who you're talking to.
Don't talk into the vacuum right down the person's name the extension have them help you guide yourself through this process.
But keep in mind if you keep your balances at 80% or below.
Of the maximum limit on your credit cards that's one way to boost your score.
Of your score comes down to two things first of all.
How much you oh and your payment history if you've got a steady record of payment history and your balances -- lower.
That's going to boost your score which is going to mean a better score but also better interest rates and that's gonna save you big money over the lifetime -- that won't.
The government getting involved is gonna fix I mean I was making fun of because I have about attitude about certainly everybody watches the show knows that.
But they do need some sort of oversight do you think getting a consumer protection bureau is gonna help or does it add another layer of mass today.
It certainly Melissa depends how you interpret it certainly -- some oversight right now may be perceived as consumer protection.
But keep in mind two thirds of our economy is how all our viewers spend their money the average consumer and a large part of that spending has put on plastic.
The easier it is to do that and make sure that people's credit as good even valid.
That means the economies can be girl we think about credit sort of that Greece's kids the right progress of the economy absolutely very very important.
No one really wouldn't -- -- how can -- -- control that control this yourself.
The oversight committee will not take care of your credit -- problems.
You must do that and make sure that you're getting the best rate.
But managing this is the key to long term success and may mean bigger -- down there ought to put toward goals like education even your retirement as well.
Now you have to be proactive I mean it's so frustrating it happened to -- where it's a relative with the same name it -- -- your credit report it's obvious it's not you.
But they don't care it's so hard to get it takes so long to get corrected.
Well it take so long because of the bureaucracy that goes on but also keep in mind.
Each -- monde credit card companies update their file so you have a discrepancy.
Once that's reported to the appropriate person typically the next month that's going to -- -- the credit -- a positive way.
But let's say identity is stolen you lose and -- Social Security card.
Call your credit card company immediately yeah let them know what happened they're willing to work with you because they want to get paid -- -- -- express effort and energy they're gonna work with you can help you boost that score -- we got to run thank you so much we appreciate it I guess.