Every
time you use credit or borrow money, a file is generated by the three major credit
report agencies: Equifax, Experian and TransUnion. Since
lenders use your credit report to determine if you qualify for loan or interest
rate, it's vital to check your credit report regularly for the following reasons:
Reasons to Check
Your Credit
- Inaccuracies
/ Mixed Files: Simple human error is often the cause of inaccuracies on a
credit report, and are therefore are not difficult to dispute. Whether the inaccuracies
relate to un-credited payments or data mixed in from the credit file of someone
else with a similar name to yours, you'll want to contact the credit agency promtly
to dispute inaccurate information being displayed on your credit report.
- On-Time
Payments: On time payments are one of the most important elements of your
credit profile. Once you send a check, anything can happen--and a delay in a payment
being received can kick you over to a 30-day delinquency. This has a negaive affect
on your credit, and creditors don't take it lightly. If you call your creditor
and explain the situation, they might adjust the info, but you need your credit
report to know whether you have a delinquency or not.
- Identity Theft:
If there were only one reason to check your credit report, this is it! One of
the fastest growing crimes today is identity theft and it can happen to anyone.
Identity theft is an insidious crime where a thief assumes your name to open credit
accounts, diverts your monthly credit statements to
another address and runs up your debt without you ever knowing. Eventually, you
get an unwelcome phone call demanding payment on a past due account that you never
opened and for items you never purchased. There are over 9 million victims every
year.
* For more information, see the FTC's Identity Theft Info Site.
- Inquiries:
Every time you apply for a loan or line of credit, the lender asks to see your
credit report and a credit inquiry is placed on your file. Even if you respond
to an offer you receive by mail, your credit will be checked and a credit inquiry
will be added to your credit report. If there are too many inquiries, it may be
interpreted as a negative-- making it more difficult to get the approval you need.
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