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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: 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. 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. 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! Get Equifax Score Watch Now! The free consumer offer consists of a free credit report, a free credit score, a free 7-day trial in Triple Safeguard
Credit Monitoring™ which monitors all 3 credit bureaus for inquiries into a consumer’s credit and notifies them
within 24 hours via email. The offer also includes $25,000 of identity theft insurance, 24/7 access to their credit report,
free assistance in correcting any inaccuracies on their credit reports and/or help filing a dispute, as well as our free “News
You Can Use” newsletter. Apply today
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Suze Orman's Tips on Good Debt Versus Bad Debt Some financial experts call certain
types of debt "good", while others say all debt is bad debt. Here, Suze Orman - author of Women & Money: Owning the Power to Control Your Destiny, explains the difference between good debt and bad debt. Tips for Financial Well-Being "Knowing the difference between good debt and bad debt
is the key to financial well-being," says Orman. If you're financing a car, Orman suggests a three year loan - no longer. She also
says that leasing doesn't make sense because it keeps you perpetually in bad debt. Plus, living paycheck to paycheck doesn't
feel good; it's a source of perpetual stress, which affects whether you can achieve your financial goals.  The Federal Reserve's new rules for credit card companies mean new credit card protections for you. Here are some
key changes you should expect from your credit card company beginning on February 22, 2010. Consumer Information
Suze Orman has been called “a
force in the world of personal finance” and a “one-woman financial advice powerhouse” by USA Today.
A two-time Emmy Award-winning television host, New York Times mega bestselling author, magazine and online columnist,
writer/producer, and one of the top motivational speakers in the world today, Orman is undeniably America’s most recognized
expert on personal finance. __________________________________ If you are considering applying for a loan, ordering a copy of your credit report may well be the best place to start.
Why? Because it’s also the first thing a potential creditor will be looking at, and even if you pay your bills on time,
you will want to ensure that all the information in your credit file is up-to-date and accurate. Studies have shown that many credit files contain inaccuracies that could affect
your credit rating, and even lead to the rejection of a loan application. That’s why reviewing your credit report beforehand
may be a good idea, giving you time to dispute any items that may be the result of simple human error or a technical glitch.
And depending on whether you are applying for
an auto loan, a mortgage loan, or a loan for business or personal use, different lenders may apply different standards in
rating your credit worthiness. For this reason, reading your credit report and understanding how your credit data might be
interpreted may give you a chance to improve your credit worthiness from the point of view of a lender. Before you begin the application process, check your credit report for the following
items: Clerical
Inaccuracies Sometimes
credit reports contain inaccuracies that are the result of a computer glitch or a clerical error. These may include payments
not credited, late payments, or data mixed in from a credit file of someone with a name similar to yours. Ordering your credit
report will quickly show you what the lender will see--then it’s up to you to dispute any information that you consider
inaccurate. Excess
Unused Credit To
make your credit more attractive to a potential lender, you may wish to consider reducing the number of revolving charge accounts
that are listed as active on your credit report. Lenders will sometimes view too much revolving debt as a negative when considering
a loan application. In situations where you
have stopped using a credit account, it is often a good idea to close the account if you don’t plan to use it anymore.
Make sure your creditor notates the account “closed at consumer’s request”--otherwise, a prospective lender
might assume the creditor closed the account for other reasons. A few credit cards managed well may improve your chances for a loan--particularly a mortgage loan, where lenders
use stricter qualifying guidelines. Another rule of thumb is to keep balances on credit cards around 75% of the available
credit limit. Ironically, credit cards that have lots of room on them may be viewed as potential debt, while maxed-out cards
make you a less desirable credit risk--both of these situations could compromise your ability to obtain a loan. 30-day and 60-day
Late Payments Even
if your credit report contains a couple of 30-day late payment entries that are accurate, many lenders will overlook the occasional
late payment if you explain the situation and your credit is otherwise good. Try to avoid any payment being 60 days late however,
as this may be a red flag for some lenders--even if they do grant you the loan, it may come at a higher rate of interest and
with less favorable terms. The primary period
lenders are interested in on a credit report is the last two years, so try to maintain on time payments, and verify that the
payments are being credited properly by checking your credit report regularly. Avoid Unnecessary Inquiries Each time a prospective creditor looks at your credit report, an inquiry notation
is added to your file, and most inquiries stay on your credit report for up to two years. Inquiries you make yourself, inquiries
made during screening for a pre-approved offer of credit, or an inquiry that is part of a background check for employment
purposes are not reported to potential credit grantors.) It is best to avoid over-applying for credit and running up excessive inquiries, for the simple reason that lenders
of creditors may think you’re trying to get credit due to financial difficulty, or taking on more debt than you can
repay. Lenders do of course realize that some
inquiries are a result of shopping around for the best rates on a loan, and so they will often overlook a block of inquiries
within a very recent period. It may help if you explain the inquiries in the application process. Understanding how your credit report affects your financial future is the key to
smart credit management. Incorporating a review of your credit report into your financial planning is also one of the best
ways to make sure you meet your goals--especially when those goals involve major purchases, and you’re shopping for
a loan with the most favorable terms possible. Learn More.
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__________________________________ LifeLock provides a proactive identity theft service, specializing
in the prevention of identity theft. Don't allow thieves to use your information. LifeLock helps you. Enroll Now. |
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