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Knowing Credit Report is Important

By Ruth Racey
Published: Saturday, November 6th, 2010

Just before in finishing up a major purchase that involves financing, it is best to get a copy of your credit report ahead of time to be sure and prepared with the surprises these can bring. Many people tend to be shocked when they see their credit report with its inaccuracy and this leads people to being scared and sometimes even stop in making the loan that they will have to make, considering their report’s results.

A great part of the total credit ratings issued have errors, inaccuracies, and misrepresented data in it. As a matter of fact, it has been found out that as much as 75% of credit reports are erroneous. And these errors have been terrible enough to stop someone from pursuing a loan or credit. Good thing is that it can be repaired.

Many people nowadays have misinterpreted that they harm their credit score with each report that they get. Wrong. This is wrong because getting credit ratings are called soft inquiries. Soft inquiries do not reflect on the report’s results as only hard inquiries are considered to have an effect on you.

Credit ratings have to be checked regularly. This is because just one error can ruin your plans because the report can bring about sky high interest rates or down payments, and in some cases, applications for credit are rejected. With our present situation, companies base their decision for credit, down payment, and interest rates with the reports that they receive. Some even use these documents as a tool for getting a job.

There are many people who can check your credit such as landlords, insurance companies, utility companies, mortgage companies, credit card issuers, hospitals, and other lenders. They can request for credit report, with your consent as stated by the law, for them to check.

You can request to the credit bureaus for a credit report. You are even entitled to one free report each year from each of the major bureaus which are TransUnion, Experian, and Equifax.

It is highly advised to utilize the three free reports in one year in order to monitor well the current scores and such. One major concern for this is identity theft. Knowing it as one of the fastest growing crimes today, monitoring your score provides a preventive method to see if there are unusual movements with the credit history. With this preventive measure available and accessible anytime, for sure you can sleep safe and sound without identity theft in your head.

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