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In much the same way that a
resume displays your work experience to a
prospective employer, a credit report provides
prospective creditors (and in some cases employers
and insurers too) with a detailed picture of your
credit history. And like a resume, your credit
report can influence whether you will receive what
you are applying for.
Ideally, your credit report
is an accurate, up-to-date reflection of your
credit history. However, since we don't live in an
ideal world, there are many reasons that your
credit report could contain inaccuracies that
might prevent you from receiving the credit you
deserve. The good news is you can take action to
keep your report accurate. Here are the top five
reasons why you should make a practice of
regularly reviewing your credit report:
Inaccuracies & Mixed Credit Files
Many inaccuracies on a
credit report can be the result of simple human
error, and are therefore are not difficult to
dispute. Of course, if you don't order your credit
report, you might never know about it. Whether the
inaccuracies relate to payments not credited, late
payments, or data mixed in from the credit file of
someone else with a name similar to yours, you
will want to contact the credit bureau to dispute
inaccurate information promptly.
Tracking
Payments
One of the most important
elements of credit is a demonstrated history of on
time payments. Once you send the check though,
anything can happen--a delay in the payment being
received can kick you over to a 30-day
delinquency. If you call your creditor and explain
the situation, they might adjust the information.
Of course, if you don't read your credit report,
you won't necessarily know which payments are
being received and reported properly.
Identity
Theft
This issue alone is reason
to order your credit report immediately. Identity
theft is an insidious crime, involving a thief who
assumes your name to open new accounts, divert
your card statements to another address, and run
up all sorts of bad debt without you ever knowing
about it until collectors come calling. Over time,
identity theft could jeopardize your ability to
obtain further credit. The best way to catch a
thief who is using your name is by getting a copy
of your credit report, which will show you if
there are accounts listed you know you haven't
opened. For example, if a thief has intercepted a
pre-approved credit card offer in your name and
sent it in with a change of address, your credit
report will include the account.
Inquiries
If you're shopping around
for a loan or more credit, you should know that
when creditors check your credit, it places an
inquiry on your credit report. Inquiries can add
up, which is often interpreted as a negative by
creditors. For this reason, too many inquiries can
actually make 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.
Credit Fraud--Unauthorized Charges
Credit fraud involves the
theft of your credit card or account number to
make unauthorized charges to your account. Though
consumers are protected financially from this
abuse, other creditors may take note of all this
activity and decide to raise your interest rates
or refuse to grant you a loan. Ordering your
credit report will help you catch new activity on
accounts that you haven't been using, or may have
closed.
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! Free
Online credit report
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