Check Your Credit Report: a Barometer of Your Financial Health
A Credit Article Contributed by Ann Hull
Just Why Should I Check My Credit Report?
Why is it ever so important, to check that credit report, on a regular basis? Well, can you really afford to lose out on your next promotion or a new job, because of a credit report mistake? Did you realize that you pay a higher interest rate on your house and car, if your credit is less than stellar! Did you also know that that insurance companies can refuse you services outright, or perhaps place you in a higher risk classification, with higher premiums to go along with it, if you are considered risky, when it comes to your credit?
Well, ya know, most folks go to the doctors for a checkup, ideally to keep from getting sick and to protect their health. So, at least once a year, make sure to check your financial health, by requesting and checking your credit report. Also, you may live in a state where you're entitled to one or two free credit reports, yearly. Of course, you should know that you can obtain a copy of your report, at no charge, if you've recently been turned down for credit.
Furthermore, you should understand that checking your credit report is vital to your financial health, since so much depends on its accuracy. And -- Although many financial and credit experts frequently suggest that once a year, everyone should obtain a copy of his or her individual credit report, from each of the major credit bureaus, some credit advisors recommend you do this quarterly! It's all too common to find errors in your credit report.
How Can I Get and Check My Credit Report?
Credit reports are available from the three primary reporting agencies: Equifax, Experian, and Trans-Union. Also, take a look at your yellow pages under "credit agency" or "credit bureau" to see if there's any subordinate or affiliated group locally available.
Some contact information includes: Equifax Phone 800-685-1111 ; Trans-Union Phone 800-888-4213 ; and, now, Experian presently offers a free report within only 30 days of credit declination, and also provides a free report every year. You'll note that the price of a combined report is normally higher than if you were to be purchasing individual reports ($35-$50). Also, these companies are often marketing a credit monitoring service, as well. Check their websites, too.
What's in the Report? Each Report Will Have Some Items in Common
Carefully review your entire report, item by item. Have the credit agency legend next to you, in order to check the coding accuracy. On your report, you'll note that the information will come under one of four classifications: Personal, Reported Accounts, Public Record, and Inquiries. You'll also see listed your credit limit and present total balance.
Information usually includes your name and account information, plus payment histories, and any records of delinquency, such as a 60, 90, or 120 days past due. Your public information will also be listed, like liens, and court judgments, lawsuits and bankruptcies.
Here are a few hints, to consider when checking your report. Never, ever assume your personal information is correct. Insure marital information is accurate. Are accounts listed as "joint" really and truly joint? Is the credit report in compliance with any court settlements? Recall that any accounts you closed should reflect "closed by consumer".
Also, are there missing items that would aid in reflecting a better, more complete history, and are all of your credit limits, account profiles, and total balances correct? These are areas you should focus on, when examining your credit report. However, before you review your history, learn as much as you can from the credit reporting websites or reputable financial sources online, so that you won't miss a thing.
What Do I Do If I Find Errors, When I Check My Credit Report?
It is ALWAYS your responsibility to report errors. At the same time, The Fair Credit Reporting Act offers you some consumer protection. The amended Fair Credit Reporting Act passed in 1996 says, among other things, that if you make an inquiry about what you think is an error on any report, that particular bureau must investigate. If the credit bureau cannot verify a specific item within a certain amount of time, the entry must be removed, under the Fair Credit Reporting Act.
Also, each time you dispute the item, the credit bureau must re-verify it. Do be wary of "frivolous" requests, though. Credit reporting agencies are not required to address these.
So, remember, it's one thing to have bad credit, but it is another to have unchecked mistakes on your credit report. For additional info, be sure to check, the websites of all the major credit bureaus, and many other financial groups, to include some government sources, all of which offer some excellent consumer information.
