Lenders Are Looking At Your Personal Credit Report To Approve Credit |
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Most people think that the personal credit report only affects the interest rate on their mortgage and credit card balance and is largely determined by what's in their credit history. But besides this, your personal credit report is under scrutiny by many other people including lenders and service providers. Your personal credit report covers such things as your payment history, amount of debt owed and types of credit used. It is increasingly used to evaluate whether you are a credit risk and whether you are likely to repay your debts on time. With more lenders and service providers looking at your personal credit report, it becomes imperative for the borrowers to review credit score on an annual basis. Utility companies and providers of residential and cellular telephone service review your personal credit report and credit score while considering your application for service and the amount of your deposit. Even the premium you pay for your homeowner's and auto insurance policies will be based on an insurance score that is partially based on your credit history. The credit reporting agencies are the providers of identification and credential verification services that calculate insurance scores for the insurance industry. In fact, there is a direct correlation between the future insurance claims and your credit. The better you handle your credit, lesser are the chances of you filing for a claim. It is possible for you to keep a tab on your personal credit report by regularly obtaining it and analyzing it. You can also verify accuracy of your personal credit report and credit score by regularly monitoring them. This is a good idea whether or not you are planning to apply for a loan, credit card or insurance policy. This is because it also helps to prevent damage caused by identity theft and forgery. This is because all creditors that have recently requested a copy of your credit history will be listed in the report. If any of the information in your report seems unfamiliar, you can take the steps necessary to make sure that credit is not issued without your authorization. This would stop any potential identity theft happening from your account. Another reason to check your personal credit report is to look for errors and omissions. It is likely that some consumers might be paying more for credit, insurance or mortgages because of inaccurate personal credit reports and credit scores. According to a recent study by the Consumer Federation of America and the National Personal credit reporting Association, they may even be denied the services altogether. The easiest way to obtain a copy of your personal credit report is to buy a three-in-one personal credit report with line-by-line comparisons of information from all three major personal credit reporting agencies (Equifax, Experian and TransUnion). These are the three global consumer and commercial credit information companies. The report, which costs $29.95, can be purchased on Equifax's Web site or by phone. For $10 more, you can also get a copy of your current credit score based on your Equifax report. Once you have obtained copies of your personal credit reports, you should look carefully at every entry from your credit cards, mortgage and loan payment history to liens or judgments filed against you. If you discover discrepancies, you should take immediate and appropriate steps to have them corrected promptly. It can take up to 30 days for an investigation to be completed. According to Smith, senior vice president of a leading customer service, consumers have no reason to think procuring the personal credit report is a complex and tedious process. In fact, it is a straightforward and simple process. Under the FCRA, both the CRA and the organization that provide the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your personal credit report. To protect your rights as a consumer under the law, you can contact both the CRA and the information provider. In fact, you can dispute errors by directly contacting the relevant personal credit-reporting agency. In some cases, you may have to provide documentation to set the record straight. After the credit-reporting agency has received your letter of dispute, the agency will then investigate the inaccurate information in your personal credit report and if your disputes are right, the inaccurate information will be removed from your personal credit report and the report reframed. |
