Credit
Check "Why?
Check out these other articles about credit reports & scores:
Credit Report 101 - Facts & Myths About Credit Reports
FAQ About Credit Bureau Reports & Credit Scores
What Is A Credit Score? Average Credit Rating
Reasons for Checking Your Credit Report
Your credit report tells lenders whether or not you are
a good risk for them to approve a loan for you. This report
is a collection of all your credit history, payments and
accounts you have paid off in the past. The information
provided in this report will determine whether or not lenders
will lend you funds you need for various reasons.
There are many times that information included in a credit
report is incorrect. Because of this it is important that
you check your own credit report regularly – a least
once a year – to ensure that all the information is
correct and up to date.
Some reasons you should check your credit report:
• Inaccuracies and Mixed Credit Files
It is possible that human error results in mistakes being
made on credit reports. These could be payments that have
been made and not credited to you, late payments or having
someone else’s date (especially if the names are
similar) being mixed in with yours. If you notice inaccurate
information you must contact the credit reporting agency
to get the mistake corrected. For a free copy of your
credit report, click here.
• Tracking Payments
Many times, checks sent through the mail do not reach
the accounting office of the company on time, or get lost
in the mail. Reading your credit report can alert you
to any problems with late or missed payments, that you
can correct by contacting the creditor. If you don’t
read your credit report, you will not know which payments
have been received and properly reported. If you would
like to receive a free copy of your credit report, click
here.
• Identity Theft
Identity theft is a serious problem and one that has caused
many people to have poor credit ratings because someone
has received credit or loans in their name and defaulted
on the payments. Your credit report will show you the
list of accounts that have been opened in your name. Check
them carefully to ensure they match your personal financial
details. Receive a free copy of your credit report by
clicking here.
• Inquiries
Your credit report will list the names of companies or
persons who have requested information regarding your
credit history. Read them carefully to ensure these do
represent the times you have applied for credit. Too many
inquiries are seen as unfavourable by lenders and will
make getting loans approved more difficult for you. Reviewing
this section of your credit report will give you an idea
of your chances of receiving a loan and will also alert
you if there is am unauthorized entry. If you would like
to see who has been looking at your credit report, click
here to get your free copy.
• Credit Fraud – Unauthorized Charges
Credit fraud involves the unauthorized use of your credit
cards pr account number to make charges on the account.
Sometimes this is done so subtly that you do not notice
the extra charges on your monthly statement. By viewing
your credit report, you will be able to catch new activity
on your accounts, especially if they are ones you haven’t
been using. To get a free copy of your credit report,
click here.
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.
While planning a credit strategy to achieve future goals,
you should regularly review your credit report to ensure
an excellent credit rating.
Check out these other articles about credit reports & scores:
Credit Report 101 - Facts & Myths About Credit Reports
FAQ About Credit Bureau Reports & Credit Scores
What Is A Credit Score? Average Credit Rating
|
