Reasons To Check Your Credit Report Regularly
the same way that a resume displays your work experience to
a prospective employer, a credit report provides prospective
creditors (and in some cases employers and insurers too) with
a detailed picture of your credit history. And like a resume,
your credit report can influence whether you will receive
what you are applying for. Ideally, your credit report is
an accurate, up-to-date reflection of your credit history.
However, since we dont live in an ideal world, there
are many reasons that your credit report could contain inaccuracies
that might prevent you from receiving the credit your deserve.
The good news is you can take action to keep your report accurate.
Here are the top five reasons why you should make a practice
of regularly reviewing your credit report.
& Mixed Credit Files
on a credit report can be the result of simple human error,
and are therefore not difficult to dispute. Of course, if
you dont order your credit report, you might never know
about it. Whether the inaccuracies relate to payments not
credited, late payments, or data mixed in from the credit
file of someone else with a name similar to yours, you will
want to contact the credit bureau to dispute inaccurate information
the most important elements of credit is a demonstrated history
of on-time payments. Once you send the check though, anything
can happena delay in the payment being received can
kick you over to a 30-day delinquency. If you call your creditor
an explain the situation, they might adjust the information.
Of course, if you dont read your credit report, you
wont necessarily know which payments are being received
and reported properly.
alone is reason to order you credit report immediately. Identity
theft is an insidious crime, involving a thief who assumes
your name to open new accounts, divert your card statements
to another address, and run up all sorts of bad debt without
you ever knowing about it until collectors come calling. Over
time, identity theft could jeopardize your ability to obtain
further credit. The best way to catch a thief who is using
your name is by getting a copy of your credit report, which
will show you if there are accounts listed you know you havent
opened. For example, if a thief has intercepted a pre-approved
credit card offer in your name and sent it in with a change
of address, your credit report will include the account.
shopping around for a loan or more credit, you should know
that when creditors check your credit, it places an inquiry
on your credit report. Inquiries can add up, which is often
interpreted as a negative by creditors. For this reason, too
many inquiries can actually make getting credit more difficult.
Moreover, if you didnt authorize someone to look at
your credit report and they did, they may have broken the
Fraud - Unauthorized Charges
fraud involves theft of your credit card or account number
to make authorized charges to your account. Though consumers
are protected financially from this abuse, other creditors
may take note of all this activity and decide to raise your
interest rates or refuse to grant you a loan. Ordering your
credit report will help you catch new activity on accounts
that you havent been using, or may have closed.
When it comes to managing your credit worthiness, your credit
report is your best resource. Ordering your credit report
gives you the opportunity to manage your credit wisely today,
while planning your credit strategy for achieving future goalsa
creditsavvy move every consumer should make!