Prior to meeting with a lender to request a loan, sign up for a new cell phone service, purchase a car/home, or interview for a job, you should definitely check your credit history. The information on your credit report may influence whether or not you get the loan, cell phone, car/home, or job.
- What Information Shows Up On Your Credit Report?
Your credit report contains information regarding your financial behavior and past/present credit balances. It provides information like when a credit account was opened, the limit or loan amount, monthly payment amounts, and current balance. It will also show whether or not you’ve made payments on time. The report also contains information about bankruptcy, child support, and taxes. This type of information can remain on your credit report for seven years or more.
- What to Do if You Find Errors
If you find that your credit report is inaccurate, investigate immediately. The problem could be a simple error or something very serious like identity theft. The faster you correct the issue, the better. To correct credit errors, first notify the agency you have a dispute with and present them with the information you have to support your finding. Then you wait to see what happens and do what they tell you to do.
- Your Credit Score
Your credit score is based on information on your credit report and calculated by one of three major financial institutions. Your credit score is referred to as a “risk score†to lenders because it is an identifier of how much of a risk you are to invest in. If you have a good credit score, you are more likely to get a loan then if you don’t.
- How to Improve Your Credit Score
The first step to improving your credit score is to check your report and verify that all information is accurate and up-to-date. Next, focus on managing your finances responsibly, either by setting and sticking to a budget, or refraining from opening numerous credit accounts. Some other things to consider that can improve your score are making payments on time, and request that information like monthly on time payments be added to your credit report to demonstrate financial security.
- When to Check Your Credit Report
In order to stay on top of your credit and finances, you should check your credit once a year. Over-checking your credit report could penalize you. But checking it once a year shows that you care about your finances and whether or not the information is correct. Plus, if you do become a victim of identity theft, you will have appropriate time to take action.
Related posts:
- Do You Have Healthy Credit?
- What is an Experian Credit Report?
- An ounce of prevention . . .
- Can You Get a Totally Free Credit Report?
- How do you know if there is an error on your credit report?
FAQ: How do I check my Free Credit Report?
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.
