Why should you obtain a copy of your credit report?

Why should you obtain a copy of your credit report? There are a handful of reasons why you should obtain your credit report.

You can get a free credit report annually

It is recommended that you review a copy of your credit report once a year. Legally you are entitled to a free credit report from one of the three credit repositories, Experian, Transunion and Equifax.

Good credit means better chance to get a loan

The old adage is correct the better your credit rating the better rate you can obtain for financing. So it is in your best interest to stay on top of your credit score and what is being reported on it.

Verify your credit report in details

Once you get your credit report be sure to review it completely. Check each account that is reported. Each account will show a date opened, balance owed, monthly payment, type of account, current status and payment history. You want to concentrate on the current status and payment history. If you have been late on some payments they will show on your report and will reflect negatively. However if there are late payments and you were never late this is something that you can dispute.

Check for inaccuracies and get them corrected

Furthermore check the status of the accounts. If you have closed an account make sure it is reflected as closed. If you have accounts that are no longer in use but are still open, close them it could help your credit. Open credit card accounts with high available balances could reflect negatively, you don't want to have too many open accounts with a great deal of available credit.

Watch out for identity theft

Verify the number of accounts and that they are yours. Identity theft is becoming more and more common. If an account is showing up that you never initiated you need to report it right away with the credit bureaus and the company listed on the report. Because up to that point if it is on your credit report it is your account no questions asked.

Your credit report rights

You have the right to dispute anything reported on your credit report. If you feel that there is an error made by a company you can either appeal to the company reporting it or write a formal letter to the credit agencies and try to have either the account or blemish removed. Chances are that will help your score if something is reported erroneously.

Check your credit report annually

In conclusion it makes perfect sense for you to review your credit report at least once a year. Because when it comes time to purchase or refinance and you find out at that point there is something reporting in error it is very difficult to have it removed in time before your financing takes place. You could be given a higher rate or even worse denied outright for that financing. Take the proper precautions and ensure that your credit is reflecting your situation correctly.

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credit report credit score