The Importance of Knowing Your Credit Report
Copyright © 2008 StraightCreditCounseling.com
Knowing your credit score and all the contents in your credit report are very important to your credit history. The reason for their importance is that careful credit report monitoring helps consumers obtain credit at rates that align with their credit history. As everyone knows, your credit history is what determines the cost you will pay to receive a loan or whether or not a company will lend you money or extend you credit. Over time, if you have good credit score, you are rewarded with paying lower interest rates, which can ultimately save you a lot of money. Additionally, monitoring your credit report helps to guard against identity theft. And while a number of consumer credit reporting agencies are available to monitor your credit for a fee, credit monitoring can be costly. But, of course, having the credit monitoring service watch your credit and letting you know if they notice anything suspicious on your credit report is certainly worth the money. But if you don’t want to spend the money to have a credit-reporting agency monitor your credit, you can do it yourself and save yourself quite a bit of money.
How to Monitor Your Own Credit Reports
One of the best ways of monitoring your credit is by checking your credit reports on a regular basis and reviewing your credit report regularly from the three major reporting agencies. You start by requesting a report from each of the three consumer credit reporting bureaus at the same time, which are Experian, Trans-Union and Equifax. You can obtain a copy of your credit report free of charge from the three bureaus once a year. Once seeing all three of your reports, you get a clearer picture of your credit history and exactly what is being reported to others. If you want to be sure of the accuracy of your credit report it’s best to request your report from one bureau first and then follow up with another bureau’s report four months later and the third report four months later. That way you stay up to date about your credit history and you still get the reports free of charge.
What To Do If You Find Errors
If after reviewing your reports, you find errors such as charges that you didn’t make that you know for sure are wrong, whether they are small or large errors, you must be sure that you get them fixed or it could affect your credit scores. How you get them fixed is by making sure you contact all three bureaus with your changes. Once you’ve made the reports, you will probably receive an amended report within a week or as soon as the changes have taken effect. If you have long unused accounts that are listed as still active on your credit report, you should close the account because unused accounts are opportunities for identity theft. If you decide to close the account, ask that the account be listed as “closed at the request of the consumer.”
Things to Watch For When You Review Your Credit
Each month as you carefully review your credit, check to make sure that you recognize the stores, the locations and any purchases listed before you pay the bill. If you pay your bills online, make sure to check your statement every month. If while checking the statement you notice any errors, contact the fraud department at the three major credit bureaus. Inform them that you have been a victim of identity theft and request that a “fraud alert” is placed in your file immediately. Also be sure to include a statement so that creditors have to call you before opening any new accounts or before changing existing information. The next step would be to call your creditors and let them know about any accounts that have been affected. Always be sure to speak with someone in the security or fraud department. Finally, it’s a good idea to follow up with a letter so that you have proof that you contacted the major credit bureaus.
Be sure to keep your credit report up to date by monitoring it regularly. Creditors, employers and businesses use all the information on your credit report to determine whether you can apply for credit, rent or purchase a home, be hired for employment and many other reasons. To learn more, visit OTS website at www.ots.treas.gov and look under “Consumer and Compliance/Consumer Inquiries.”
About the Credit Counselors at Straight Credit Counseling
We at Straight Credit Counseling do everything we can to help individuals and families get back on track and totally out of debt. Credit Counseling services offered by Straight Credit Counseling helps individuals repay their debts by using careful budgeting and management of money strategies. A qualified counselor offers advice on how to manage outstanding debt as well as answering various credit questions. If you are ready to improve your credit, the team at Straight Credit Counseling is available to conduct a no obligation consultation. To arrange for a session by phone, please feel free to e-mail us at info@StraightCreditCounseling.com. Contact us today and rest in the knowledge that your credit report will soon be one that you’re proud to present.