Many consumers understand the value of regularly monitoring their credit reports. Identity theft affects millions annually. Furthermore, credit report errors can result in credit card or loan denials. Sadly, many people do not take the necessary precautions to safeguard their credit. There are many ways to protect our credit. To begin, you should make a habit of checking your report every six months.
The Purpose of Personal Credit Reports
A consumer’s credit worthiness is judged by information included in their credit report. When applying for any type of credit, lenders will review your credit score or full report. Credit scores are often reviewed by retailers and lenders that offer instant credit. However, if you are hoping to obtain a major credit card, auto loan, or mortgage, the lender will request a detail copy of your report.
Send your letter by certified mail, return receipt requested so you can document what the credit reporting agency received. Make sure your letter is dated, and don’t forget to keep copies of everything you send.
Credit reports include information such as number of credit accounts, balances, past due accounts, judgments, collection accounts, etc. Based on the information, a lender will determine whether you qualify for a loan. Individuals with several negative remarks, or credit report errors, have a lower chance of getting approved.
Why Check Your Credit Report Online?
Checking your free credit report online is the first step to protecting your credit rating. It does not take long for someone to steal your identity. Within a few weeks, a crook may have attained several credit accounts in your name; and these accounts will appear on your credit report.
Credit Tip! Creditors use your credit report and score to decide whether or not you should be given a loan.
Moreover, creditors make mistakes. For example, a creditor may have failed to report a past due balance that was paid in full. By checking your credit report every six months, you will be able to detect suspicious activity and resolve inaccuracies. For double credit protection, subscribe to a credit monitoring service. For a low monthly fee, these services notify consumers whenever new credit accounts are opened in their
Checking your credit report online is free and convenient. Various websites offer free credit reports. Simply verify information such as your name, address, social security number, and within minutes you are able to gain access to your report. Reports are easy to read and viewable.
Chances are you have seen ads online for free personal credit reports. You may have even clicked on one and received a copy of your credit history. Now that you have all of this information, do you know what to do with it?
Check for inaccuracies
It is very possible that some of the information contained on your credit report isn’t accurate. It can be something as small as an address you no longer live at or something as big as a debt you paid off being reported as outstanding. If you find an inaccuracy, contact the credit bureau and ask them to correct the error.
Check for unusual activity
Does your credit report contain accounts that you never opened. Are there outstanding balances due to companies you have never heard of? If so, someone may have opened accounts in your name and your credit report is paying the price. If your credit report contains any information that leads you to believe you are a victim of identity theft, contact the credit bureau and your local police department, who may put you in touch with the FBI.
Check to see who has been checking you out
Your credit report contains a list of the companies and individuals that have requested and received a copy. By law, there are certain requirements that must be met for a third party to view your credit report. Most requesters are required to have obtained your permission and signature, although under certain circumstances, this isn’t necessary. Under the Fair Credit Reporting Act, “Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined under title 18, United States Code, imprisoned for not more than 2 years, or both.” If someone you know shouldn’t have had access to your credit report, is listed as having obtained it, contact the credit reporting agency right away.
Your credit report is an important tool lenders use to help determine whether or not to give you credit. A free online credit report is an important tool that you can use to make sure your credit report is as clean as it should be.Your credit report is an important tool lenders use to help determine whether or not to give you credit. A free online credit report is an important tool that you can use to make sure your credit report is as clean as it should be.