Why Should I Get My Free Credit Report?
June 4th, 2009, Written By: Kerri Randall
Do you know what’s on your credit report? If you don’t, your creditors may know more about you than you do, and it could be all wrong. It’s estimated that the vast majority of credit reports contain errors (anywhere from 70-90%), so it’s likely that yours is one of them.
The only way to remove those errors is by checking your credit report and filing inquiries to have them dropped. Maybe you haven’t checked it because you think it might be expensive, but you’d be wrong. By law, you are allowed one free credit report from each of the credit bureaus every year. If you use those up, there are multiple other ways to obtain a free copy online.
How Your Credit Is Used
Your credit is used to determine what interest rates you’ll have to pay on a loan, whether or not you’re eligible for a new credit card, and even if you’ll get hired by a new employer. It’s a way to determine how dependable you are. If you manage your finances well, creditors will have more confidence that they will get their money back and will be more willing to approve you. If you are deep in debt, potential employers have reason to believe that you’ll start looking for a different job shortly after they hire you to find better pay to cover your debt.
Errors Hurt Your Score
Errors on your credit report can hurt your score, and just a few points can mean the difference between having good credit or fair credit, and that can mean the difference between a high or low interest rate. Taking the time to review your report carefully and remove any errors will only benefit you.
When your report is free, there’s no reason not to know what’s on it. Especially if you’re thinking of making any big purchases this year, you want to be a step ahead of the lender and know exactly where you stand. If a lender checks your credit before you do and your history is negative, you’ll either have to accept higher rates, or be denied and end up with even worse credit. You don’t want to risk that knowing you had free opportunities to fix your report before then.
Categories: Free Credit Score Reports
