Creditnet News Story

III notes payment key to maintaining credit history

Sunday, February 28, 2010

By William Davis

Monitoring credit reports also important.

Recently, the Insurance Information Institute made suggestions on how to maintain a good credit report in light of the new Credit Card Accountability, Responsibility and Disclosure Act taking further effect.

According to the III, the most critical factor in a person's credit report is whether they pay their bills on time. Along with that, consumers need to make sure to keep the amount of credit they use low.

"In addition, the number of delinquent credit card accounts and the length of time the account went unpaid also factor into a consumer credit report calculation," the III said.

The III advised that consumers should also take a look at their credit report for any errors and should have them repaired. According to federal law, consumers are entitled to one free credit report from each of the credit bureaus every 12 months.

However, consumers may not be aware of that fact and could be misled into thinking they have to pay for their credit report. In light of that, the Federal Trade Commission put forward a new disclosure for companies that use a free credit report as a way to market their credit monitoring services.

Starting April 1, companies will have to include this disclosure, which points consumers to a federally sponsored site where they can get their credit report.