Five
Reasons to Check Your Credit Report Regularly
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. Learn
More About Credit Repair
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!
Learn More About Credit Repair 
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