Check Your Credit Report Before It Is Too Late |
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Check your credit report before it is too late. Negative information in your credit report could make a big difference in the interest rate that you'll end up paying for mortgages, car loans and even your credit card balances. And, errors are fairly common in credit reports. Recent studies show that 70% of all credit reports contain at least one error. So, the onus is on you to check your credit report for any wrong information and get it corrected. The best way to determine if you've negative information in your credit report is to order a copy and check credit your report carefully. However, unless you request for a copy of your credit report from one of the three credit reporting agencies, you will not be supplied with one. A credit report is like a report card. It contains all the financial information about a person that a creditor will want. So, as a person attains the legal age and begins to use credit for things like car payments and credit cards, the three main credit report agencies keep tabs on all credit activity in his or her life. This information is stored in a computer and compiled routinely. So, for a thorough review, check your credit report with all three credit reporting agencies (CRAs). This is because the agencies don't share information with each other and therefore there might be variations in the files each CRA maintains on you. And you should ideally check your credit report at least once a year. But because of all the work put into saving, compiling, and evaluating your credit information, the three credit reporting companies require you pay a fee to receive a copy of your credit report. However, you're entitled to one free copy of your credit report in a year. But you should check your credit report irrespective of whether it is free or you had to pay for it. Even if you don't use a credit card and seldom make credit payments for things you purchase, it's a good idea to check your credit report once a year, or at the least every two years. This is important because if you check your credit report regularly, you'll be able to locate errors or wrong information that can spoil your credit score. You may find that someone else's account has been added to your credit report due to a computer glitch or a file switch. You also need to check your credit report regularly to prevent identity fraud. Also, any wrong, missing, or incomplete information in your credit report can lead to your being denied credit. However, there won't be much time to start figuring out potential problems with your credit history once you've been denied credit. So, it's better to check your credit report in advance and head off any potential problems. If you regularly check your credit report, you will be able to keep abreast of your credit situation. For example, if a company to which you owe money goes out of business or transfers outstanding accounts to another organization without informing its customers, it could affect your credit score. If this happens, contact the company that holds the uncollected accounts and offer to make payments and get the account straightened out. But this is only possible if you keep tabs on your credit score by regular credit report checks. You may also find while you check your credit report that the report may list an account as open or unpaid even though you paid it off years ago. If this is the case, you'll need to contact the vendor and ask for an update of your account to ensure that your credit report receives a change of status and removes the incorrect information. So, it's important to be regular and check your credit report. Keeping accurate tabs on your credit report will help to ensure you maintain a good credit score for the rest of your life. |
