Why Check Your Credit Report?
A Credit report is one of the most telling things about you!
It may not accurately tell who you really are or what you’re like. But it does go a long way in telling a story to those who review it. But then, how would you know what the story it’s telling unless you know what it’s saying? Obtaining your credit report is critical for you to know what potential employers are going to see. And think! In much the same way that a résumé displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers as well) with a detailed picture of your credit history. And like a résumé, your credit report can influence whether you get that job or promotion or not.
Identity theft! A stolen reputation! A lost job opportunity! These are just a few of the favorite things that scammers and other thieves love to do to people who fail to keep track of what’s really on their credit rap sheet. But the potential negatives can go way beyond just these few ill-begotten side-effects.
In a perfectly ideal world, your report would show correct and up-to-date credit activity. A history that reflects your integrity and commitment you live out in your daily life. But the reality is, we don’t live in that ideal world. It goes to follow that the real world is full of discrepancies and unfairness. Thus, it is enough to say that your credit records could reveal inaccurate information. Those inaccuracies can easily “step on your parade” so-to-speak! The good news, however, is that there are actions you can take to keep your report correct. To begin with, you can order a free e-book and get free credit consultation that will help you at protecting your credit.
Why Check Your Credit Report?
There are five good reasons you should check your credit report. Let’s take a look at the three minor reasons first:
- Mixed Credit Files Filled with Inaccuracies: Human error can be the simplest explanation for inaccuracies showing up on a credit report. Errors are not difficult at all to dispute. But if you never order your report, you may never know about them. Whether those inaccuracies involve payments that had not been credited, erroneously reported late payments, or data mixed in from the credit file of someone else with a similar name to yours, you’ll want to promptly contact the credit bureau to dispute these issues.
- Inquiries: While shopping around for a loan, you should know that creditors check your credit history. This means that the creditor has placed an inquiry on your report. As innocent as it may seem, those inquiries can add. Additional inquiries on your report are often interpreted as a negative by creditors. For this reason, too many inquiries can actually drive your credit score down, making 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.
- Payment Tracking: One of the most important elements of credit is a history of on-time payments. But although you send the check within a proper time frame, life experience will tell you that just about anything can happen to it. An unexpected delay in the payment being received could occur, and probably has occurred. This delay could have easily kicked you over into a 30-day delinquency. Usually, by simply calling your creditor to explain the situation, they may adjust the information. But there’s no real guarantee that takes place. Again, if you don’t read your credit report, you won’t necessarily know which payments had been correctly reported.
The Two Biggies!
The last two reasons are of critical importance. Not to say that the previous three are not important, but that these two are highly critical to you!
- Unauthorized Charges & Credit Fraud: Credit fraud involves the theft of your credit card or account number to make unauthorized charges to your account. Although banks and credit card issuers usually provide some level of consumer protection from this abuse, newly applied-to creditors may take note of this activity. Based on that, the more recent creditor may choose to raise your interest rates or refuse to grant you a loan altogether. By ordering your credit report, you will catch new activity on accounts that you haven’t been using, or may have even closed.
- Identity Theft: This issue alone is reason to order your credit report immediately. Identity theft is simply when a thief assumes your name to open a new accounts. The thief diverts your card statements to another address so that you’re left in the dark about the new account and its activity. Then the thief runs up all sorts of bad debt without you ever knowing about it. At least until collectors come calling. Over time, identity theft could jeopardize your ability to get further credit. The best way to catch a thief who is using your name is by getting a copy of your credit report. This will show you if there are accounts listed you had nothing to do with opening. For example, if a thief has intercepted an approved credit card offer in your name and then sent it in with a change of address, your credit report will include the account. From there, it’s all on you! This is a critical reason to consider credit repair.
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! You can Learn more about how you can clean up your credit report and protect your future.