Checking Your Credit Report
Too many people are ill informed about their credit score. Your credit report is the deciding factor in so many aspects of life, from financing brand new furniture to buying a house, so it`s important to keep track of your score. Checking your report regularly is vital to ensuring your identity hasn`t succumbed to fraud.
Everyone is entitled to a free copy of their credit report once a year. You can retrieve the report more often than that but it will cost some money. The report itself is an extensive list of all of your credit accounts, both open and closed and these accounts will show whether or not you have defaulted or missed payments or are in good standing. Any fraudulent activity can impact your score because it will show up as false information. Checking your credit report for this type of fraudulent activity is crucial so you can stay on top of your credit history and clear up any mistakes as soon as they arise.
Occasionally, errors will happen. These may occur when a creditor fails to report a fulfilled debt or someone accidentally enters incorrect personal information. Typos happen everywhere, so your credit report isn`t immune to them. When you order your free copy of your credit report, check to be sure your name, social security number and address are all up-to-date and correct. Make sure all the account information is correct, such as if you have recently closed an account or changed credit limits. These are details that need to be listed. Be sure there are no incorrect delinquencies and missed payments or, if there are and you have cleared these up, make sure they are updated.
Other mistakes that may show up are missing accounts, phantom accounts, duplicate accounts and negative items that are over seven years old. After seven years, the Credit Bureau should remove these items completely from your report.
There are also times you would need access to your credit report other than the annual free copy. If you have applied for a loan or credit card and been denied you should be given access to an additional free report. If you suspect identity theft in any form, order a copy of your credit report. Instances in which you may need to clear up false information are when you receive letters and phone calls from collection agencies trying to collect money for accounts you never opened. Report a suspected identity theft to the credit reporting agencies as soon as possible.
If you have bad credit and are working to improve it, getting a copy of your credit report is crucial. This way, you know exactly where you need to focus on paying down debt and getting financially stable again. A great credit score is necessary if you want a mortgage with a good interest rate, buy to let mortgages for investment purposes, or affordable credit cards. It`s never too late to start rebuilding your credit, so get started as soon as possible by viewing the information on your credit report.