Do you Know the Benefits
of Checking your Credit Report?
By Mary Arce
Do you know why you should check your credit report?
Of course you do, because you have undoubtedly experienced them
working in your life!
No matter where you roam, your credit report follows you through
life, updating all aspects of your life: your employment, where you live, your
opened credit accounts, your closed accounts, your payment history, and even
City Hall public records on you.
In this country, a good credit history brings you benefits of
all kinds--a home mortgage, an apartment lease, an auto loan, or even more
Like a job resume, your credit file carries a lot of weight,
that's why you need to keep an eye on what it says about you. Many options are
cut off to you if you do not look "credit worthy" on paper. A bad report can
mean higher rates on loans and insurance. It can also mean whether you get hired
or promoted by a growing number of employers who now use them. Even if you think
you have a good credit standing and you pay your bills on time, you still need
to review your credit file for accuracy.
Studies have shown that credit files have an error rate as high
as 70%, often the result of simple human or computer error. Sometimes these
errors show you being late in paying your bills when you are not.
Your file might even leave out information that could sway a
decision in your favor. The most common error is where damaging information of
another person, with a similar name or account number, is mixed into your
Monitor your personal credit file so that you are alerted
whenever negative or derogatory items are reported against you.
A neglected credit file can lead to some major inconveniences in
the future. You should fix mistakes or remove any incorrect information as soon
as you find it.
Errors that creep onto your report take time to correct.
Catching these mistakes when they occur helps resolve them faster. When you
improve your credit worthiness you can qualify for better rates - which adds up
to big savings for you.
Even if you think you have an unblemished past, checking your
report lets you know what a future lender or employer will learn about you.
If your credit report is less than perfect now, you can deal
with lingering problems effectively, and move towards a better credit standing
in the future.