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Why Check Your
Credit Report?
About Credit
Reports > Why it is important to Check Your Credit Report
Why it is important
to check your credit report (summary)
Your credit profile, will determine how easy or
difficult it is to get bank loans, auto loans, personal loans, credit cards
or any other form of financing. Your profile can also determine what interest
rates you pay, and in some, whether you get a job or able to obtain a larger
life insurance policy. Your credit profile with show your prospective creditors
a summary of your financial history on file with the credit bureaus.
Six Reasons
to Check Your Credit Report Regularly
Ideally, your credit report is an accurate, up-to-date
reflection of your credit history. However, since we don't live in an ideal
world, there are many reasons that your credit report could contain inaccuracies
that might prevent you from receiving the credit you deserve. Therefore
you should check your credit report regularly to spot and correct inaccurate
information (79% of credit reports contain errors).
Five
Six Reasons to Check Your Credit Report Regularly
Inaccuracies & Mixed
Credit Files
Tracking Payments
Identity Theft
Inquiries
Credit Fraud (Unauthorized
Charges)
Its FREE
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Six
Reasons to Check Your Credit Report Regularly
Here are the top reasons why you
should make a practice of regularly reviewing your credit report: |
| 1) |
Inaccuracies &
Mixed Credit Files
(back to top)
Many inaccuracies on a credit report
can be the result of simple human error, and are therefore are not difficult
to dispute. Of course, if you don't 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. The good news is you can take action to keep your
report accurate. You will want to contact the credit bureau to dispute
inaccurate information promptly.
Resource: http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm |
| 2) |
Tracking Payments
(back to top)
One of the most important elements
of credit is a demonstrated history of on time payments. Once you send
the check though, anything can happen--a delay in the payment being received
can kick you over to a 30-day delinquency. If you call your creditor and
explain the situation, they might adjust the information. Of course, if
you don't read your credit report, you won't necessarily know which payments
are being received and reported properly. |
| 3) |
Identity
Theft
(back
to top)
This issue alone is reason to order
your 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 haven't 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.
Resource: Federal Trade
Commission Identity Theft Center at: http://www.consumer.gov/idtheft/ |
| 4) |
Inquiries
(back to top)
If you're 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 didn't authorize someone to look at your credit report and they did,
they may have broken the law. If you would like to see who's been looking
at your credit you can get a free credit report. |
| 5) |
Credit
Fraud--Unauthorized Charges
(back to top)
Credit fraud involves the theft of
your credit card or account number to make unauthorized 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 haven't been using, or may
have closed. |
| 6) |
It is FREE!
Get a Free Credit Report
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 goals--a credit-savvy
move every consumer should make! Get a Free
Credit Report |
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