Is it Important to Check My Credit Report?
With the hustle and bustle of everyday life, consumers normally don't think about what is reported on their credit reports.
Whether they feel they already know the contents of their credit history, or just tuck this little "chore" into the back of their mind for later, or if they are even scared to check, the average consumer does not know his or her credit score and what information is included on his or her credit history.
In laymen's terms, a credit report is all of your financial information laid out in a very organized manner on a few sheets of paper.
Items listed on your credit history include your credit borrowing history, such as mortgage loans, car loans, credit cards, etc.
, and your timeliness in paying your bills.
Credit applications you have submitted for approval are also included, as well as the acceptance or denial of the application.
Most of the time when you apply for credit, the company will request a copy of your credit report.
(Believe it or not, even just this request for your financial information will be recorded on your credit history!) The company will then review the credit report and determine if they feel you are a credit risk.
If not, you will most likely receive the loan or credit card for which you were applying.
Adversely, if you are determined to be a credit risk, your application will be denied.
Because your credit history plays such a major role in such things as purchasing a home, buying a new car, or obtaining a credit card, it is vitally important that consumers KNOW what is portrayed on their credit report.
THINKING you know, is not enough.
If you only THINK you know, you may be surprised the next time you apply for credit.
Obtaining a copy of your credit history is really quite simple.
There are companies all over the internet who offer free copies of credit reports.
Another way is to contact the three major credit reporting companies, also known as credit reporting bureaus - Experian, Equifax, and TransUnion - to request a copy of your credit report.
Each of these companies is legally required to provide you with a copy of your credit history each year, upon your request.
Once you receive your credit reports, allow yourself a few minutes to sit down and review each of them.
The purpose of this review is to make sure that your spending practices are reported accurately.
You will want to make sure that your payment history is correctly stated, old and present addresses are accurate, etc.
You will also want to make sure that any old debts which were overdue but, subsequently, paid, are reflected as such.
(For overdue debts which eventually were paid, you might consider contacting the lender or collection agency to see if they will remove the debt from your credit report in its entirety.
) If you find any inaccurate or false information on your credit report, it can be corrected.
A simple letter to the credit reporting agency explaining the purpose of your letter and outlining the information which needs to be corrected, along with proof of your claim, should result in the information being amended.
Many consumers do not understand the importance of a clean credit history.
Often, they forget about that $30 bill that was in dispute and was then, unbeknownst to them, added to their credit report, or are unaware that they have been reported for being over their limit on a credit card because, in fact, the card was paid down the very next day.
This is the very reason it is important to obtain a copy of your credit history and take some time to review the reports once they arrive.
Just requesting the report, and then doing nothing with it, is useless.
Not KNOWING the contents of your credit history can cause financial chaos at the very worst time for you - maybe while you are trying to purchase a home.
If false and inaccurate information is allowed to remain on your credit report, you may face years of high APR rates.
Don't let this happen to you.
KNOW what is reported on your credit report!
Whether they feel they already know the contents of their credit history, or just tuck this little "chore" into the back of their mind for later, or if they are even scared to check, the average consumer does not know his or her credit score and what information is included on his or her credit history.
In laymen's terms, a credit report is all of your financial information laid out in a very organized manner on a few sheets of paper.
Items listed on your credit history include your credit borrowing history, such as mortgage loans, car loans, credit cards, etc.
, and your timeliness in paying your bills.
Credit applications you have submitted for approval are also included, as well as the acceptance or denial of the application.
Most of the time when you apply for credit, the company will request a copy of your credit report.
(Believe it or not, even just this request for your financial information will be recorded on your credit history!) The company will then review the credit report and determine if they feel you are a credit risk.
If not, you will most likely receive the loan or credit card for which you were applying.
Adversely, if you are determined to be a credit risk, your application will be denied.
Because your credit history plays such a major role in such things as purchasing a home, buying a new car, or obtaining a credit card, it is vitally important that consumers KNOW what is portrayed on their credit report.
THINKING you know, is not enough.
If you only THINK you know, you may be surprised the next time you apply for credit.
Obtaining a copy of your credit history is really quite simple.
There are companies all over the internet who offer free copies of credit reports.
Another way is to contact the three major credit reporting companies, also known as credit reporting bureaus - Experian, Equifax, and TransUnion - to request a copy of your credit report.
Each of these companies is legally required to provide you with a copy of your credit history each year, upon your request.
Once you receive your credit reports, allow yourself a few minutes to sit down and review each of them.
The purpose of this review is to make sure that your spending practices are reported accurately.
You will want to make sure that your payment history is correctly stated, old and present addresses are accurate, etc.
You will also want to make sure that any old debts which were overdue but, subsequently, paid, are reflected as such.
(For overdue debts which eventually were paid, you might consider contacting the lender or collection agency to see if they will remove the debt from your credit report in its entirety.
) If you find any inaccurate or false information on your credit report, it can be corrected.
A simple letter to the credit reporting agency explaining the purpose of your letter and outlining the information which needs to be corrected, along with proof of your claim, should result in the information being amended.
Many consumers do not understand the importance of a clean credit history.
Often, they forget about that $30 bill that was in dispute and was then, unbeknownst to them, added to their credit report, or are unaware that they have been reported for being over their limit on a credit card because, in fact, the card was paid down the very next day.
This is the very reason it is important to obtain a copy of your credit history and take some time to review the reports once they arrive.
Just requesting the report, and then doing nothing with it, is useless.
Not KNOWING the contents of your credit history can cause financial chaos at the very worst time for you - maybe while you are trying to purchase a home.
If false and inaccurate information is allowed to remain on your credit report, you may face years of high APR rates.
Don't let this happen to you.
KNOW what is reported on your credit report!
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