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Improve Your Credit Worthiness By Checking Your Credit Report Consistently |
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Did anyone tell you to check credit report
regularly? If yes, did you check it? If not, why not? A recent rumor has spread all across the country that if you check credit report on a regular
and ongoing basis, you might lose your credit scores. But is that right? Not at all! If you are looking for a loan to buy a new car or a new house, you need to check your credit report first. Your credit report is the license that tells you whether you are creditworthy. And if your credit report shows good credit score, you can apply for any kind of loan from any kind of institute. Moreover, you would get very good interest rates on the loan that may not be available to you with a bad credit score. Your credit report score is calculated using a complex algorithm that takes into account numerous factors. How you paid your bills in the past, how many accounts you had, what's the amount of your outstanding debt--all are recorded in your credit report. It is very hard to predict how many points you can gain by changing one factor. No matter you check your credit report consistently; you still wouldn't be able to calculate your credit report score on your own. For a person with a high credit score, just one late payment can cause a significant drop. If a person has a low credit score, it may not cause a large drop at all. That's why it's important to check credit report and find out what's your present credit position. If you check your credit report, it's recorded as a soft inquiry and doesn't harm your credit at all. Only hard inquiries from a lender or creditor, made when you apply for credit, can bring your credit score down a few points. If you make too money inquiries, the creditors may think that you are credit hungry and you want any means to satisfy your needs. Along with the question of whether to check credit report or not there is another issue that revolves around whether to close or not your old accounts. Many people think that closing old and inactive accounts is a way of improving their credit score. But in most cases, closing accounts exert just the opposite effect on their reports. Canceling old credit accounts can lower your report score by making your credit history appear shorter. So, think twice before closing the old accounts on your credit report. It's important to check credit report because it helps you determine whether there is any kind of negative information on your credit report. Negative records such as collection accounts; bankruptcies and charge-offs remain on your credit report for 7-10 years and can bring serious damage to your credit standing. Moreover, your report may not be completely flawless from trivial errors like typos and mistakes in address and so on. So, its better to order a copy of your credit report from any of the three major credit bureaus, Equifax, Experian and TransUnion and see if everything is okay. When you open a joint account, co-sign on a loan or become an authorized user on someone's credit card, you need to take legal responsibilities for the account. Any activity, whether bad or good, would be listed on both persons' credit reports. Hence, both people need to check credit report regularly. And if one of you doesn't check your report, you may be in trouble for getting further credit. To wind up, there is no magical way to improve your credit standing. Just keep paying your bills on time and remove inaccuracies from your credit report. And for all of those, you need to check credit report regularly. While you check your credit report prefer only the major credit bureaus. These bureaus have very good reputation and they would definitely stand by you in your problems. |
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