Your Credit Report

The information contained in your credit report affects every aspect of your life. It seems like everybody runs a credit report on you -- even those you may not know about. It is so important to keep the information in your credit report accurate and current. A single late payment or reporting error can prevent you from obtaining housing, loans, insurance, or even employment. Keeping on top of the information in your credit report should be a priority.




How do you find out what is contained in your credit file? You can get a copy of your credit report online. Every person is entitled to a free copy of their report once a year. Once you have a copy of your report, the work begins.




There is more than one company that issues credit reports. The three major ones are Experian, Equifax and TransUnion. Your information is not the same in each of these reports. You should get a copy of your credit report from each of these companies every year. If you plan on making a major purchase that requires a loan, or if you plan on changing insurance companies or employment, check your report first.




Another reason to check your report on a regular basis, is that it shows you who is looking at your credit file. If you see lots of inquiries then you know that something is going on. You should also look at what is being reported. Sometimes mistakes are made and information that does not belong to you ends up in your credit file. This should be corrected, even if it is not derogatory. You only want the information that belongs to you to be in your credit file.




If you see something in your file that is not correct you can fix that. Contact the credit bureau that issued the report. All of these companies give you the ability to dispute items in your file online. Sometimes it is better to send in a paper copy of your dispute, especially if it is lengthy. You can protect yourself from possible fraud when requesting paper copies of your report by asking the credit bureau to only include the last 4 digits of your social security number instead of the complete 9 digits. If your mail is intercepted, they cannot get your full number.




So you’ve stayed on top of your credit and you applied for a loan and were denied. How do you prevent this from happening? Simply put, you can’t. Every company has their guidelines for issuing credit. However, they have to tell you what they based their decision on. If any part of the decision was from information in your credit file, then you have the right to request a free report within 60 days of the denial. Take advantage of this and be sure to request it. You have the right to know what is in that file. It is your responsibility to be sure that the information contained in your credit report is accurate.