Check Your Credit Report Annually for the Good and Bad

Kendra Sonjer — 1108101600

Reviewing and reading your credit report may be the
furthest thing from you mind, but it may be one of the most
important financial actions you can take. Because Your
credit report can directly affect your ability to rent an
apartment, apply for a mortgage, or even get a new job.

Since everyone from your bank to your landlord can peak at
your credit report, shouldn't you have a look too? By
reading your credit report annually, you will be able to
correct any mistakes and assess whether you need to make
financial improvements.

Your credit report is a treasure trove for your potential
lenders. It shows who you borrowed from and how much, how
you handled bill payments and any arrears. It can include
utility and cable bills along with your credit card balance
and mortgage. It paints a financial picture, describing
your credit life in detail.

There are three major credit-reporting companies in the
United States. These are Equifax, Trans Union (both also
in Canada), and Experian. If you are planning to analyze
your credit report, you should get a copy from all three
companies. You never know who is going to request a report
from which company.

Since details can vary in the reports, it's wise to get one
from each of the bureaus. The bureaus' websites provide the
reports for a small fee. But Experian offers all three
reports for a price that's less than buying them
separately.

Each company's report will have four sections that cover
identifying information, credit history, public records and
inquiries. Look over each section carefully to ensure that
you are being reported on accurately.

Identifying information is simply information used to
determine your identity. This would include current and
previous address, full name (married and maiden), social
security or social insurance number, phone numbers,
employer's name, and spouse's name. Some of the
information may be wrong, such as the spelling of your
name. Don't fret; this isn't unusual as information can
sometimes be sent with mistakes.

The credit history section will list all the accounts from
all of your creditors. Loans, credit cards, current account
status, payment histories -- it will all be there. Some
reports use codes for for such things as payment habits,
while others use plain language.

The public records section lists any financial information
such as bankruptcies. If you find errors in this section,
be sure to contact the credit bureaus immediately to remedy
the situation.

The inquiries section lists all requests for a credit
report. Having a lot of requests isn't necessarily a bad
thing, unless the number and frequency make it appear you
are trying to borrow everywhere you can think of.

If you find mistakes, let the bureau know and back up your
correction with any documentation you have from past loans.
You will likely get a response within a month.

Restoring good credit may take time, depending on the
seriousness of the situation. But the sooner you know your
status, the sooner you can take action to help yourself.
Whether correcting mistakes or charting a new course in
borrowing and paying, it's all up to you.

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Check Your Credit Report Annually for the Good and Bad