The importance of getting your free credit report
cannot be overemphasized. In the current economic climate, with such a
strong squeeze on credit, everybody's credit rating is at risk, and
even if you think you have a premium credit score, you might be in for
an unpleasant shock. People are getting such shocks not only daily, but
hourly throughout the USA.
However, before we discuss that, let's have a look at what a credit
report is and what information it gives you. It contains four parts
basically: your personal details, your credit history, public records
appertaining to your financial stability and finally, inquiries made by
third parties as to your credit record. While you might not understand
the need for this information, they are carefully examined by potential
lenders.
To put it in general terms, your credit report is a record of your
credit history and your financial stability. It contains financial
details such as mortgages, loans, mail order agreements, credit cards,
banking facilities and so on, and includes your repayment history, any
late payments, missed payments, defaults and so on. It also includes
any details of credit or loan applications you have made, and whether
any have been turned down.
If your credit report is bad, you will either not be offered credit or
will have to pay a higher interest rate than those with a good credit
report. In some cases you will be refused credit. Hence the importance
of knowing what your credit record is like. The same is true of your
credit score that lenders use to assess your credit-worthiness.
The implications of a bad credit report include you being refused a
credit card application, a loan, a mortgage, a car loan and any other
form of credit. You could even be refused a mail order agreement or
even a car hire. That is not the end of it, because the same could
apply to your partner and your children if they reside at the same
address as you. When your kids look for a mortgage of their own before
being married, or seek a loan for their first car, they could be
refused because of your poor credit record.
That is fine if the record is correct, because although it is bad for
you, at least it will have been deserved. However, it has been
estimated that up to 90% of credit records are inaccurate, and that a
large proportion of people are being wrongly refused credit. Not an
entire 90%, obviously, but a lot of people are being unfairly refused
credit, and that could be you or your kids. You won't know till you
apply.
Why wait till then? Why not just get a credit report now, so that you
know where you stand. It makes sense, and since it is free what are you
waiting for? Did you know that anybody can see your credit report? In
the USA, the Fair credit Reporting Act (FCRA) allows employers,
creditors, landlords, insurers and any other business to have access to
your credit report for purposes of credit, renting a home, employment
or any other reason where your financial situation could be of interest.
These reports are available in the USA from three agencies: Experian,
Equifax and TransUnion, and each has to provide you with a free copy of
your credit report annually on request. Once you have a bad record on
your report you have to wait 7 years to have it removed.
However, there are companies that help you to check up on your report
and have any inaccurate data removed. You could easily have your next
credit request refused due to inaccurate or false information. Identity
theft or even mistaken identity is no longer uncommon. Nor is it
uncommon for office staff to make typing errors and you to have
something on your credit record that never occurred.
In today's economic climate your credit is the one thing you must do
all that you can to protect, so make sure you implement your right to a
free credit report. There are companies that can get your free report
from all three agencies, and then check it with you to make sure that
nothing is untoward. With 90% containing inaccurate information, that
might be highly likely. If so they can help you to get these false
records removed.
It's your credit, and it affects everybody living in your home. Get it
checked out now with a free triple credit report. Also check up on your
credit score at the same time.
Article Source: http://
www.articlesbase.com/finance-articles/the-importance-of-a-free-credit-
report-589664.html About the Author
Your good credit record is extremely valuable, so
check out your USA
Free Credit Report now and make sure that you have no false
information that could stop you and your family getting credit in the
future. UK readers Click here: Debt Advice
for advice. |
